Hog futures on the Chicago Mercantile Exchange (CME) nudged upward Wednesday, buoyed by a rise in pork carcass cutout values, as traders awaited critical weekly data from the U.S. Department of Agriculture (USDA). Meanwhile, live cattle futures also saw modest gains, supported by tight supply conditions, robust cash markets, and strong wholesale beef prices.
August live cattle futures settled 2.6 cents higher at 212.35 cents per pound, although they remained below the three-week high reached a day earlier. August feeder cattle futures followed a similar trajectory, closing 2.65 cents higher at 303.875 cents per pound. The support for live cattle comes amid constrained cattle inventories across the country, contributing to firm market fundamentals and sustained demand for beef products.
The USDA’s boxed beef prices reflected continued strength despite a slight decline from the previous day. Choice cuts were priced at $365.16 per hundredweight (cwt) in the afternoon session, down 28 cents from Tuesday’s close but close to last week’s five-year peak of $366.34 per cwt. Select cuts advanced 20 cents to $356.72 per cwt, signaling solid demand for high-quality beef in wholesale markets.
Lean hog futures posted modest gains as well, with the most actively traded July contract rising 0.45 cent to settle at 105.025 cents per pound. This uptick mirrored positive momentum in the pork carcass cutout value, which the USDA reported at $106.62 per cwt, up 51 cents from Tuesday. The increase in cutout value suggests strong wholesale demand for pork products, helping to underpin futures prices.
Market participants are now focused on Thursday’s release of the USDA’s weekly export sales report, which will provide critical insight into the international demand for U.S. beef and pork. Export sales data are closely monitored as they impact price trends and market sentiment, particularly amid ongoing global trade uncertainties and evolving supply chain dynamics.
In summary, the livestock futures markets saw moderate gains on Wednesday amid firm fundamentals in both cattle and hog sectors. Tight supply, solid wholesale prices, and anticipation of upcoming USDA data combined to create a cautiously optimistic trading environment. Traders and analysts will be closely watching the forthcoming export sales report for further guidance on the direction of prices in the near term.
