Rising Heat Pressures Cattle Futures as Hog Market Softens

Key Moments

Weather-Driven Selling Weighs on Cattle Futures

Chicago Mercantile Exchange (CME) live and feeder cattle contracts ended the session weaker, with analysts citing seasonal factors and hotter weather encouraging additional marketings in an already constrained cattle supply.

“The hot weather makes people more willing sellers,” said Cassie Fish, an independent analyst and author of The Beef blog.

“They don’t want heavy cattle to stand out there panting,” she said.

Fish noted that while boxed beef values have been strengthening recently, participants are anticipating softer levels ahead. “The futures market has gotten in front of it,” she said, referring to expectations for July.

Wholesale Beef Prices and Slaughter Data

Wholesale beef prices moved higher, according to U.S. Department of Agriculture (USDA) afternoon figures. Choice boxed beef gained $0.41 to reach $391.44 per hundredweight (cwt), and select boxed beef increased by $2.60 to $374.18 per cwt.

On the supply side, the USDA reported that 107,000 cattle were slaughtered on Monday, slightly above the 106,000 head reported one week earlier.

CME Cattle Futures Overview

Lean Hog Futures Edge Lower Despite Pork Price Gains

In the lean hog market, the most-active CME August contract slipped modestly. August hogs settled 0.070 cent lower at 97.275 cents per pound.

USDA boxed pork data for Monday afternoon showed firmer prices. Carcass values rose $2.29 to $97.66 per cwt, while pork bellies advanced $8.97 to $120.93 per cwt.