Beef markets retreat from highs on plant closure rumours - CME
Hog futures mixed as weak cash prices drag down July contract
4 June 2025
2 minute read
By: Chicago Mercantile Exchange (CME) cattle futures closed lower on Tuesday, retreating after the benchmark August contract hit a three-week high, though recent strength in cash cattle prices continues to support the market, Reuters reported, citing traders.
CME August live cattle futures settled down 1.250 cents at 209.750 cents per pound, turning lower after a climb to 212.850 cents, the contract's highest level since May 14. CME August feeder cattle ended down 0.525 cent at 301.225 cents per pound, also easing from a three-week top.
Cattle futures fell abruptly at mid-session, with brokers citing rumors that one US meat-packing plant would cut back on production, a move that theoretically could reduce demand for market-ready cattle. Others were skeptical of the talk.
Given that the US meat-packing industry has been expanding capacity at a time of poor margins, some closures of older packing plants are likely within the next year and a half, said Rich Nelson, chief strategist at Allendale Inc.
"It's not outlandish to suggest that something like that could be seen. We are simply questioning whether it is going on right now," Nelson said.
Cash cattle markets remained quiet following trades in Texas and Kansas last week, which ranged from $221 to $223 per cwt — an increase of $1 to $3 compared with the previous week.
The US Department of Agriculture (USDA) priced choice cuts of boxed beef at $365.44 per hundredweight (cwt) on Tuesday afternoon, down 56 cents from Monday, while choice cuts were down $1.59 at $356.52.
Hog futures closed mixed. Most-active CME July hogs finished down 0.400 cent at 104.575 cents, setting back after rising to 106.050, the contract's highest since February 18.
Lackluster cash hog markets weighed on July futures, Nelson said.
"We've got cash markets which are floundering. So maybe we are nearing a top of some sort in futures," Nelson said.
The USDA priced pork carcasses on Tuesday afternoon at $106.11 per cwt, down 64 cents from Monday.
