Beef prices surge on tight supply, lifting cattle futures - CME

Lean hogs hit contract highs as pork prices climb sharply

17 June 2025

2 minute read

By: Melanie Epp

Lean hog futures on the Chicago Mercantile Exchange (CME) set life-of-contract highs across the board on Monday, lifted by firm US cash hog markets and the highest wholesale pork prices in nearly three years, Reuters reported, citing brokers.

CME July lean hogs settled up 2.325 cents at 111.800 cents per pound after notching a contract high at 112.050 cents. August hogs ended up 2.550 cents at 112.675 cents after reaching a new high of 112.875 cents.

"Last week's cash hog and pork trade was higher," said Rich Nelson, chief strategist for Allendale Inc. "And we are in the last phases of what is a seasonal rally into early July," he said, noting the US meat prices tend to peak around the Fathers Day and the Fourth of July holidays.

The US Department of Agriculture (USDA) priced the pork carcass cutout on Monday afternoon at $119.48 per hundredweight, up $1.42 from Friday and the highest reading since August 2022. The cutout price has climbed in each of the last five weekdays.

Brokers noted that Beijing on Friday approved 23 US pork plants and 83 poultry plants to export eligible products to China. However, US pork sales to China have declined each year since 2020, and sales commitments of US pork to China so far in 2025 are down 29% from a year ago.

"It doesn't matter if they (China) add more pork plants; they are not asking for our product," Nelson said.

Cattle futures bounced back on Monday after Friday's profit-taking dip, but stayed below an all-time high set last week.

Most-active August live cattle futures settled up 3.100 cents at 215.550 cents per pound. The thinly traded June contract ended up 1.925 cents at 227.025 cents per pound after reaching 229.125 cents last week, the highest-ever reading on a continuous chart of the front contract.

CME August feeder cattle futures closed up 3.800 cents at 310.225 cents per pound.

Tight US cattle supplies and historically high beef prices continue to underpin the market.

In the wholesale beef market, choice cuts were worth $382.11 per hundredweight, up $4.23 from Friday, and select cuts jumped $3.87 to $367.47 per cwt, according to USDA data. Both readings were the highest in five years.