Rain and tight supply push cattle futures higher - CME
Hog futures edge upwards amid June contract gains
6 May 2026
1 minute read
By: Chicago Mercantile Exchange (CME) cattle futures settled higher on Tuesday as rains in cattle-producing states fuelled fears of delayed cattle shipments and weight loss in cattle herds, reported Reuters.
Strong cash cattle trade also kept futures afloat on Tuesday, as consumer demand has remained resilient and supply stayed tight.
Chicago Mercantile Exchange June live cattle settled 1.475 cents higher to 253.225 cents per pound. August feeders ended 5.7 cents higher to 372.30 cents per pound.
Rains in Colorado, which is home to large feedlots, could cause travel disruptions and pose a risk of weight loss to cattle, which sometimes shy away from eating in rainy, muddy conditions, analysts said.
Boxed beef cutout prices turned higher on Tuesday: Choice cuts were priced $1.86 higher to $393.42 per hundredweight and select cuts rose $3.91 to $394.51 per cwt, according to US Department of Agriculture data.
The upcoming start of grilling season and warmer weather have also helped support cattle futures, as the summer typically ushers in stronger demand for red meat.
Beef packer margins continued to be deep in the red as the US cattle herd remains near a 75-year low, with the closure of the US-Mexico border to cattle imports also constricting supply.
Packers were estimated to lose $224.15 per head of cattle slaughtered on Tuesday, compared with $129.55 per head the week prior, according to Denver-based livestock marketing advisory service HedgersEdge.
Benchmark June lean hogs ended 1.675 cents higher to 101.425 cents per pound.
