Cattle futures reach multi-month highs amid tight supplies

Cattle futures on the Chicago Mercantile Exchange (CME) rose to multi-month highs on Tuesday, driven by tight supplies and increasing wholesale beef prices. Technical buying further supported the rally, lifting both live and feeder cattle prices.

Industry experts note that supply constraints are expected to persist for a significant period due to the time required to rebuild herds. CME December live cattle rose to 230.175 cents per pound, marking its highest level since July 13.

According to the USDA, wholesale boxed beef prices for choice cuts increased to $374.14 per hundredweight. While beef packer margins have narrowed recently, they remain profitable. In contrast, lean hog futures remained relatively steady as the market dealt with sluggish demand and weak pork prices.