Livestock futures on the Chicago Mercantile Exchange (CME) declined on Monday, driven by a combination of profit-taking, steady cattle cash prices, and concerns over consumer demand for beef in the fall.
Cattle futures saw a drop as traders reacted to profit-taking and the stable cattle cash market. Additionally, uncertainty about future beef demand contributed to the downward trend. Early in the session, CME feeder cattle futures received some support from a sharp decline in Chicago Board of Trade corn futures. However, as corn futures recovered, rising feed costs—coupled with packers’ profit margins remaining in negative territory—put additional pressure on the contracts.
The US Department of Agriculture (USDA) reported mixed movements in wholesale beef prices on Monday. Boxed beef cutout prices for choice dropped by 2 cents to $313.75 per hundredweight (cwt), while select cutout prices increased by $2.61 to $300.07 per cwt.
Hog futures also experienced a decline despite higher wholesale US pork prices earlier in the day. USDA data indicated a significant drop in pork cutout prices for ham, which contributed to the pressure on futures. Don Roose, president of US Commodities, highlighted that “seasonal trends on hogs are all negative right now,” pointing to increased pork supplies and higher hog weights compared to the previous year.
US pork processors slaughtered 482,000 hogs on Monday, surpassing both the 453,000 hogs processed the previous week and the 477,242 processed during the same period last year, according to USDA data.
On the CME, August live cattle futures closed down 1.600 cents at 186.975 cents per pound, while October live cattle futures fell 1.750 cents to 186.800 cents per pound. August feeder cattle futures ended 3.275 cents lower at 256.425 cents per pound.
August lean hog futures finished 2.025 cents lower at 91.450 cents per pound, reaching their lowest price since July 16 during the mid-session. October lean hog futures closed down 3.375 cents at 74.825 cents per pound.
