Cattle futures hit record highs on tight supply reports - CME
Hog market mixed as cutout values slip, futures steady
29 July 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures set life-of-contract highs on Monday, buoyed by a pair of US government reports released late Friday that underscored historically tight US cattle supplies, Reuters reported, citing brokers.
CME August live cattle futures settled up 1.400 cents on Monday at 227.875 cents per pound after hitting a contract high at 228.850 cents, and most-active October cattle rose 1.625 cents to finish at 224.775 cents per pound.
CME August feeder cattle futures settled up 2.150 cents at 333.525 cents per pound after notching a contract high at 335.975 cents.
The US Department of Agriculture's (USDA) monthly Cattle on Feed report, released after markets closed on Friday, said the number of cattle in US feedlots as of July 1 totalled 11.1 million head, down 2% from a year ago, while analysts surveyed by Reuters had expected a smaller drop of only 0.8%.
Placements of cattle into feedlots during June were down 8% compared to a year ago, while analysts on average expected a more modest 2% drop.
Separately on Friday, the USDA reported the nation's cattle herd at 94.2 million head, a record low for July 1.
"The Cattle on Feed report was clearly a surprise -- the low placements and lower-than-expected July 1 inventory," said Doug Houghton, an analyst at Brock Associates.
US ranchers slashed their herds in recent years after drought burned up grazing pastures. Market participants have since been waiting for signs that cattle producers have been holding back heifers from slaughter, a step toward rebuilding the herd.
Friday's two USDA reports, Oklahoma State University livestock marketing specialist Derrell Peel said in a weekly note, "do not indicate significant heifer retention. My feeling is that some movement towards herd rebuilding may be starting but is very slow and cautious," Peel wrote.
Wholesale beef prices firmed on Monday. The USDA priced choice cuts of beef at $367.73 per hundredweight (cwt), up $1.05 from Friday.
CME hog futures closed mostly higher on Monday but the front August lean hog contract settled down 0.175 cents at 108.525 cents per pound. Most-active October hogs ended up 0.275 cents at 90.875 cents per pound.
The USDA priced the hog carcass cutout on Monday afternoon at $118.29 per cwt, down 57 cents from Friday.
