Cattle futures fall as USDA eyes herd rebuild
26 September 2025
2 minute learn
Chicago Mercantile Alternate lean hog futures set a contract excessive on Thursday as robust money costs supported the market, Reuters reported, citing analysts.
After the buying and selling session ended, the US Division of Agriculture (USDA) stated in a quarterly report the nation’s stock of hogs and pigs on September 1 was 74.5 million head, down 1.3% from a 12 months earlier. The decline shocked analysts who on common had predicted a 0.3% enhance.
The US breeding stock was 5.93 million head, down 1.8% from final 12 months, the USDA stated. Analysts had anticipated a 0.5% decline.
“It says we’re taking a look at decrease provides,” stated Doug Houghton, analyst with Brock Associates.
Earlier than the USDA issued its report, CME October lean hogs ended up 0.675 cent at 100.100 cents per pound and set a contract excessive of 100.800 cents. December hogs §closed up 0.500 at 88.625 cents per pound.
“The report appears to be like bullish throughout all the contracts,” Houghton stated. “The entrance months are nonetheless going to comply with the money costs. The back-end months, I’d assume this could positively be supportive for these.”
In CME’s cattle markets, futures costs declined because the USDA stated it was growing a plan to revitalise the decimated US herd. The plan won’t embody funds to producers, Agriculture Secretary Brooke Rollins stated.
US cattle inventories declined to their lowest stage in a long time after a years-long drought decreased pasture lands out there for grazing, pushing up beef costs for shoppers.
Inventories have tightened additional because the USDA has halted imports of Mexican cattle because of the unfold of the livestock pest New World screwworm in Mexico. Rollins stated Mexico has not adequately enacted protocols to regulate screwworm, after the parasite was just lately present in Mexico lower than 70 miles from the US border.
CME December reside cattle dropped 2.525 cents to 234.300 cents per pound. October feeder cattle slid 5.575 cents to 354.050 cents per pound.
US costs for alternative cuts of boxed beef dropped by $5.42 to $371.97 per hundredweight and choose cuts slid by $2.97 to $353.45 per hundredweight, in keeping with the USDA. The decline added stress on futures, merchants stated.
