Livestock markets see cattle highs and lean hog volatility

Agricultural markets are experiencing volatility across livestock and grain sectors. On the Chicago Mercantile Exchange, cattle futures recently reached multi-month highs due to tight supplies and beef demand, though they faced technical selling pressure to close lower. Feeder cattle also hit three-month highs before encountering resistance at their 200-day moving average.

In contrast, lean hog futures have faced downward pressure, with prices dropping for several consecutive sessions due to weak pork demand and low carcass cutout values. Don Roose, president of US Commodities, noted that global production is up while demand remains flat or poor.

In the United Kingdom, the Agriculture and Horticulture Development Board (AHDB) reports a long-term outlook of tightening livestock supplies. UK beef production is forecast to decline to 896,000 tonnes by 2027, while sheep meat production is expected to drop by 2.4% due to lower slaughter numbers and breeding flock contraction. The pork and dairy sectors also face declining production through 2027, driven by farm profitability challenges and rising costs.

In Canada, corn and soybean futures saw declines, and Ontario pork prices reported a decrease in dressed weight value.