Cattle set contract highs on record cash prices - CME
Lean hog futures slip
29 April 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures stormed to new contract highs on Monday on record cash prices and limited supplies, Reuters reported, citing analysts.
Concerns that Washington could block cattle from Mexico added support to futures, as a disruption in imports would tighten US supplies that are already at their lowest levels in decades.
CME June live cattle futures jumped 1.350 cents to end at 209.6 cents per pound. August feeder cattle futures closed 0.65 cent higher at 294.950 cents per pound.
Cash cattle prices set new record highs on Friday and were up about $3 to $4 from the previous week, setting a positive tone for futures, brokers said.
US producers are able to command steep prices after slashing their herds due to a drought that reduced pasture lands available for grazing. The tight inventory forces beef processors to compete and pay more to buy cattle to slaughter for steaks and hamburger meat.
Processors on Monday were losing an estimated $135.65 per head of cattle they slaughtered, marketing advisory service HedgersEdge.com said.
They slaughtered an estimated 104,000 cattle, down from 105,000 cattle a week ago and 112,648 cattle a year ago, according to the US Department of Agriculture.
USDA Secretary Brooke Rollins sent a letter to Mexican Agriculture Minister Julio Berdegue on Saturday, warning that the United States would restrict livestock imports from Mexico on April 30 if the Mexican government did not take further action against the pest called New World screwworm.
After futures trading ended on Monday, Rollins said the nations had reached an agreement but did not explain what it was.
In CME's lean hog market, June futures slipped 0.15 cent to 101 cents per pound after rising earlier to the highest level since February.
