Cattle futures surge as supplies hit 75-year low - CME
Hog processors bleed losses as pork margins turn negative
18 May 2026
1 minute read
By: Live cattle and feeder futures jumped on Friday on the Chicago Mercantile Exchange (CME) after tight US supplies drove up cash prices this week, reported Reuters.
Futures looked too low compared to the cash market, which climbed as meatpackers competed for inventories that have dropped to a 75-year low, traders said.
The US cattle herd dwindled following a persistent drought that burned up grazing lands in the western US and hiked costs for livestock feed. The Trump administration also halted imports of Mexican cattle to keep out the New World screwworm parasite, further tightening supplies.
Cash prices reached $265 per cwt this week in the northern areas, such as Nebraska, up as much as $7 from last week, traders said.
CME June live cattle finished 1.825 cents higher at 253.900 cents per pound and August live cattle rose 1.775 cents to 247.925 cents per pound. August feeders increased 3.450 cents to 361.450 cents per pound.
"There's a pretty good discount or basis spread between futures and cash right now," said Austin Schroeder, analyst for Brugler Marketing & Management. "You're seeing the futures gain a little bit of strength here."
Strong demand for steaks and hamburgers among US consumers has supported cattle and beef prices, which set records this year. This week, US President Donald Trump was considering executive actions to facilitate increased beef imports to cool domestic prices.
Beijing renewed export licenses that had expired for more than 400 US beef plants, China's customs website showed, following a summit between Trump and Chinese President Xi Jinping. The renewals were not expected to cause a surge of US exports due to tight supplies and steep prices, analysts said.
"Renewal of US beef export facility registrations is an essential step to securing market access," said Justin Tupper, president of the United States Cattlemen's Association.
Low cattle supplies raised costs for meatpackers, who were losing an estimated $314.65 for each animal they slaughtered, according to HedgersEdge.com. For hogs, pork processors were losing about 95 cents per head.
CME June lean hog futures eased 0.775 cent to 98.750 cents per pound.
