29 September 2025

1 minute read

By: Global Ag Media

North America

Lean hog futures stormed to contract highs at the Chicago Mercantile Exchange (CME) on Friday as smaller-than-expected US inventory numbers stoked concerns about supplies, Reuters reported, citing analysts.

The nation's inventory on September 1 was 74.5 million head, down 1.3% from a year earlier, the US Department of Agriculture (USDA) said in a quarterly Hogs and Pigs report issued after trading ended on Thursday. Analysts had on average predicted a 0.3% increase.

The report also implied that there may be a shortfall in supplies from December to May 2026, said Rich Nelson, chief strategist for Allendale.

"This type of supply story, which we only thought would be short term, is now extended into the long term," Nelson said.

CME October lean hogs ended up 1.4 cents at 101.500 cents per pound and set a contract high of 101.675 cents. December hogs closed up 2.425 cents at 91.050 cents per pound and set a high of 91.525 cents. The December contract rose 3.9% for the week.

Strong cash prices helped support nearby futures, traders said.

In CME's cattle markets, futures prices shook off losses from Thursday. US cattle inventories remain at their lowest level in decades after a years-long drought reduced pasture lands used for grazing and raised feeding costs.

CME December live cattle were flat at 234.300 cents per pound after falling earlier to the lowest level in more than a week. The contract slipped 0.6% for the week.

CME October feeder cattle jumped 2.95 cents to end at 357.000 cents per pound. The contract rose 0.8% for the week.

The USDA reported a week ago that there were 11.1 million cattle in US feedlots as of September 1, down 1.05% from a year earlier. Analysts had expected a smaller drop of 0.9%.

Traders remained on edge about the spread in Mexico of New World screwworm, a damaging livestock pest, after the USDA said on Sunday that Mexico had confirmed a case of less than 70 miles from the US border.