Beef futures hit record highs on tight US cattle supplies - CME
Pork slaughter edges higher but lean hog prices trend lower
9 July 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures surged to contract highs on Tuesday due to tight domestic inventories, reported Reuters.
US demand for beef remains strong while limited supplies of cattle continue to constrain meat production, analysts said.
CME August live cattle futures jumped 4.075 cents to close at 219.975 cents per pound. August feeder cattle climbed 5.4 cents to finish at 319.125 cents per pound.
Wholesale boxed beef prices also rose, with choice cuts up $2.06 at $393.04 per cwt, according to US Department of Agriculture data.
Futures and cash prices for cattle hit records this year as supplies dwindled to their lowest level in decades. Farmers slashed their herds in recent years because drought reduced the amount of pasture land available for grazing.
Some traders had thought that cash prices may come under pressure in the coming weeks as the US begins to lift a suspension on imports of Mexican cattle that Washington imposed in May over the spread of a livestock pest south of the border.
Traders were also watching for a setback in beef demand following the July 4 holiday and reduced slaughtering of cattle by meatpackers.
However, rising wholesale beef prices prompted traders to question whether cash cattle prices will drop as previously expected, said Rich Nelson, chief strategist for brokerage Allendale. Strong cash prices often underpin futures.
"This is really interesting how this mentality has changed quite quickly," Nelson said.
Profit margins have improved for beef processors. They were earning an estimated $77.65 per head of cattle slaughtered on Tuesday, compared to losses of more than $150 per head a month ago.
Meatpackers slaughtered an estimated 118,000 cattle on Tuesday, down from 120,000 cattle a week ago and 122,000 cattle a year ago, according to US data.
Packers slaughtered an estimated 480,000 hogs, up from 472,000 hogs a week ago and 478,051 hogs a year ago.
CME August lean hogs ended down 0.325 cent at 106.775 cents per pound.
