On Thursday, October lean hog futures at the Chicago Mercantile Exchange (CME) increased by 0.2 cents, settling at 82.25 cents per pound. Meanwhile, live and feeder cattle futures experienced significant gains as traders adjusted positions ahead of the USDA’s monthly cattle on feed report, buoyed by strong U.S. export demand.
October live cattle rose 1.675 cents to 179.975 cents per pound, marking the highest price since August 16, while October feeder cattle futures climbed 3.825 cents to 243.775 cents per pound, the highest since August 2. Analysts anticipate that the USDA report will show a 0.9% increase in cattle in U.S. feedlots compared to last year, with expectations of a 1% decline in August cattle placements.
Support for cattle prices has been further strengthened by a 36% increase in U.S. beef export sales for the week ending September 12, alongside declining feed grain prices. The dollar’s continued decline post-Fed rate cut has made U.S. farm products more attractive to international buyers, contributing to the positive momentum in cattle futures.
