Cattle futures climb on tight supply, strong cash prices - CME
Lean hog futures edge higher amid firm pork demand
16 July 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder futures jumped on Tuesday as recent gains in cash prices underpinned the markets, Reuters reported, citing analysts.
Cash prices climbed about $4 to $8 per hundredweight (cwt) last week, signalling to traders that futures also needed to rise.
US cattle inventories are at their lowest level in decades after farmers slashed their herds due to a years-long drought that burned up pasture lands used for grazing. The decline constrained beef production and pushed prices to records this year.
"Cattle are finding support from the discount of the futures to the cash markets, as well as higher cutout values," said Brian Hoops, president of Midwest Market Solutions.
CME August live cattle futures climbed 3.05 cents to 222.400 cents per pound. The market set highs in multiple 2026 contracts.
August feeder cattle advanced 2.800 cents to 322.275 cents per pound.
Wholesale boxed beef prices were mixed, with choice cuts rising by $0.65 to $377.72 per cwt, according to US data.
US beef importers remained on edge over President Donald Trump's plan to impose a 50% tariff on Brazilian goods starting August 1.
Brazilian meatpackers are weighing whether to make new shipments to the United States, said Roberto Perosa, president of Brazilian beef lobby ABIEC.
US food companies have increasingly relied on Brazilian lean beef to make hamburgers due to limited domestic supplies.
"If the proposed 50% tariff is implemented, Brazilian beef would face a prohibitive 76.4% total tariff, reducing shipments to minimal levels this fall," Steiner Consulting Group said.
Commodities traders are racing to unload Brazilian coffee in the United States before Trump's tariff takes effect.
Rising prices across an array of goods, including coffee, pulled US inflation higher in June. Overall consumer prices rose 0.3% in June, a roughly 3.5% annual rate, after a 0.1% increase in May.
"With wholesale beef prices trending higher through much of June, we expect July retail beef prices to rise further," Steiner Consulting said.
In other news, CME August lean hog futures ended up 0.700 cent at 103.925 cents per pound.
