Cattle futures firm on tight supplies despite weaker beef - CME
Hog prices edge higher as cash market strengthens
11 December 2025
1 minute read
By: Chicago Mercantile Exchange (CME) cattle futures rose modestly on Wednesday, supported by tight cattle supplies, even as wholesale beef prices declined, Reuters reported, citing analysts.
CME February live cattle settled up 1.575 cents at 228.525 cents per pound after reaching 228.700 cents, the contract's highest since November 4. January feeder cattle ended up 2.875 cents at 338.375 cents per pound.
The US cattle herd has shown few signs of expanding after dropping to its lowest level in decades, while imports of Mexican cattle remain halted as Mexico continues to battle an outbreak of the New World screwworm pest.
Still, wholesale beef prices have been in retreat this month, with meat cases largely stocked for the year-end holidays. The US Department of Agriculture (USDA) priced choice cuts of beef at $359.36 per hundredweight, down $1.68 from Tuesday and the lowest reading since May. Select cuts fell $3.15 to $344.88 per cwt.
Meat packers' profit margins have fallen back into the red, with packers losing $9.45 per head of cattle as of Wednesday, according to Denver-based livestock marketing advisory service HedgersEdge.com. Margins had briefly spiked above $100 per head in the first week of December.
Packers slaughtered an estimated 123,000 cattle on Wednesday, according to USDA data, up from 117,000 cattle a week ago but down from 125,065 a year ago.
Hog futures finished mostly higher, led by firming cash hog values. CME benchmark February lean hog futures settled up 0.550 cent at 82.425 cents per pound.
"It looks like the seasonal break in cash hogs and pork is over, and now we will be evaluating lighter supplies in the weeks ahead," said Rich Nelson, chief strategist for Allendale.
The USDA priced pork carcasses on Wednesday afternoon at $97.27 per cwt, up 83 cents from Tuesday and the highest level in about a month.
