Lean hog futures edge increased amid agency pork demand
16 July 2025
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Chicago Mercantile Change (CME) reside cattle and feeder futures jumped on Tuesday as current positive aspects in money costs underpinned the markets, Reuters reported, citing analysts.
Money costs climbed about $4 to $8 per hundredweight (cwt) final week, signalling to merchants that futures additionally wanted to rise.
US cattle inventories are at their lowest degree in many years after farmers slashed their herds as a consequence of a years-long drought that burned up pasture lands used for grazing. The decline constrained beef manufacturing and pushed costs to information this 12 months.
“Cattle are discovering help from the low cost of the futures to the money markets, in addition to increased cutout values,” stated Brian Hoops, president of Midwest Market Options.
CME August reside cattle futures climbed 3.05 cents to 222.400 cents per pound. The market set highs in a number of 2026 contracts.
August feeder cattle superior 2.800 cents to 322.275 cents per pound.
Wholesale boxed beef costs had been combined, with selection cuts rising by $0.65 to $377.72 per cwt, in response to US knowledge.
US beef importers remained on edge over President Donald Trump’s plan to impose a 50% tariff on Brazilian items beginning August 1.
Brazilian meatpackers are weighing whether or not to make new shipments to the USA, stated Roberto Perosa, president of Brazilian beef foyer ABIEC.
US meals corporations have more and more relied on Brazilian lean beef to make hamburgers as a consequence of restricted home provides.
“If the proposed 50% tariff is applied, Brazilian beef would face a prohibitive 76.4% whole tariff, decreasing shipments to minimal ranges this fall,” Steiner Consulting Group stated.
Commodities merchants are racing to unload Brazilian espresso in the USA earlier than Trump’s tariff takes impact.
Rising costs throughout an array of products, together with espresso, pulled US inflation increased in June. Total shopper costs rose 0.3% in June, a roughly 3.5% annual price, after a 0.1% enhance in Might.
“With wholesale beef costs trending increased by way of a lot of June, we count on July retail beef costs to rise additional,” Steiner Consulting stated.
In different information, CME August lean hog futures ended up 0.700 cent at 103.925 cents per pound.
