US cattle futures rise on record-low herd, tight provide
28 July 2025
2 minute learn
Chicago Mercantile Trade (CME) cattle futures turned larger on Friday, as merchants anticipated US authorities experiences would present tight cattle provides, reported Reuters.
After the market closed, the US Division of Agriculture (USDA) reported that the nation’s cattle herd was 94.2 million head as of July 1, a report low for that date.
In a separate report, USDA stated that as of July 1, there have been 2% fewer cattle in US feedlots in comparison with a yr earlier. Analysts had anticipated USDA to indicate 0.8% fewer cattle, in line with a Reuters Information ballot.
Nonetheless, a lot of the market’s consideration early within the buying and selling session was centered on US President Donald Trump’s social media posts, the place he stated america would promote “a lot” beef to Australia after Canberra stated it might loosen up import restrictions.
Virtually instantly, economists, market analysts, and commodity merchants interviewed by Reuters questioned Trump’s assertion.
US beef costs set data this yr after ranchers slashed their herds resulting from drought that burned up pasturelands used for grazing.
Now, a ban on cattle imports from Mexico due to New World screwworm, a devastating livestock pest, and steep tariffs on Brazilian beef which might be set to take impact on August 1 may additional tighten US meat provides and require further imports of Australian beef.
“Are we going to be promoting a bunch of beef to Australia proper now? Completely not,” stated Dan Norcini, an impartial livestock dealer. “The cattle numbers simply aren’t there.”
CME August reside cattle futures settled up 0.675 cent at 226.475 cents per pound, whereas most-active October reside cattle futures ended up 1 cent at 223.150 cents per pound.
CME August feeder cattle futures ended 2.475 cents larger at 331.375 cents per pound. CME September, October and November feeder cattle futures set contemporary contract highs throughout the session.
In the meantime, lean hog futures have been largely decrease, as merchants are rising involved that top-buyer Mexico will roll out retaliatory tariffs on US pork subsequent month, market analysts stated.
CME August lean hog futures ended up 0.500 cent at 108.700 cents per pound, whereas most-active October ended 0.500 cent decrease at 90.600 cents per pound.
