US cattle futures rebound as demand fears recede - CME
Hog market steadies with traders watching pork cutout
28 May 2026
1 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures climbed on Wednesday as concerns eased about the risk for high prices to hurt demand for US beef, Reuters reported, citing analysts.
Prices rallied after falling more than 3% last week and setting their lowest levels since March on Friday.
Live cattle futures set a record high for the front-month contract last month as consumer demand has stayed strong for beef, while the US cattle herd has dwindled to its smallest size in 75 years. However, high prices for beef, gasoline and other goods recently raised worries that consumers may cut back.
Oil prices were about 4% lower on Wednesday after Iranian state TV said it had seen a draft of an initial, unofficial framework for an agreement between Iran and the United States on ending their conflict and reopening the Strait of Hormuz.
"If it looks like energy prices might be heading lower, coupled with record-high stock market levels, it takes away some of the concerns about consumer demand for beef falling," said Dan Norcini, an independent livestock trader.
August live cattle jumped 3.35 cents to finish at 242.500 cents per pound, while August feeder cattle futures soared 5.175 cents to 354.625 cents per pound.
For boxed beef, the US Department of Agriculture reported that values for choice cuts rose by $2.63 to $392.90 per hundredweight on Tuesday, while select cuts increased by $5.30 to $390.30 per hundredweight.
Despite lofty prices for beef, meatpackers remained under pressure from high costs for scarce supplies of cattle.
Packers were losing about $299 for each head of cattle they slaughtered on Wednesday, according to HedgersEdge.com. For pork, processors were earning about $4.40 for each hog they slaughtered.
In CME's lean hog market, July futures advanced 2 cents to 102.125 cents per pound. The contract fell to a December low on Friday.
"Hogs look to me like they are trying to forge a bottom," Norcini said. "The key to them continuing to push higher will be additional strength in the pork cutout."
The wholesale pork carcass cutout on Tuesday rose $2.59 to $98.85 per cwt, according to USDA.
