Cattle futures dip as beef packers face mounting losses
29 Might 2025
2 minute learn
Chicago Mercantile Trade (CME) lean hog futures rose on Wednesday for a second day in a row as stronger demand was anticipated with the spring/summer time grilling season stepping into gear following the Memorial Day vacation within the US, reported Reuters.
CME most actively traded July lean hogs rose 1.150 cents to complete at 103.30 cents per pound.
“Hogs are reacting to the robust cutout yesterday and predict pork demand to extend as we transfer into the summer time months and out of spring. The pork cutout might want to proceed to maneuver increased to maintain the hedge fund shopping for lively,” mentioned Dan Norcini, an impartial dealer.
The pork cutout on Wednesday afternoon was weaker nevertheless, with carcasses down $1.33 to $102.40 per hundredweight (cwt) and bellies dropping $5.82 to $146.37 per cwt.
In the meantime, feeder cattle futures fell for a second day in a row and reside cattle futures fell for a 3rd consecutive day.
Most lively August feeder cattle misplaced 2.525 cents to finish at 295.625 cents per pound, and August reside cattle fell 1.125 cents to 208.175 cents per pound.
Market gamers predict wholesale beef costs to interrupt as soon as the shopping for for the Father’s Day vacation (June 15) within the US wraps up, mentioned Norcini. “Packers can’t and won’t maintain chopping this deeply within the purple ceaselessly,” he mentioned.
Beef packer margins had been estimated at losses of $113.85 per head on Wednesday vs. losses of $112.05 per head on Tuesday and $124.90 per head per week in the past, based on livestock advertising and marketing advisory service HedgersEdge.com.
Wholesale values for beef had been up on Wednesday afternoon. Alternative cuts of boxed beef rose $3.57 to $365.42 per cwt, whereas choose cuts rose $0.91 to $351.74 per cwt, USDA information confirmed.
In the meantime, the USDA’s chief veterinarian mentioned on Wednesday that america will probably resume Mexican cattle imports by year-end, after a halt because of the unfold in Mexico of the New World screwworm pest that may devastate livestock.
The USDA indefinitely suspended cattle imports from Mexico this month, citing the pest’s northward motion.
