US cattle futures rise amid tight supplies and processing disruptions

Cattle futures rose on the Chicago Mercantile Exchange as concerns regarding limited US inventories grew. The US Department of Agriculture reported that cattle placements into feedlots last month were the lowest August totals recorded since 1996.

Beef processing has faced disruptions due to an immigration crackdown in southwestern Kansas, which has kept meatpacking workers away from plants and delayed cattle shipments. Consequently, cattle slaughtering fell by an estimated 14% last week to 87,000 head.

In the hog market, December futures declined. The USDA reported that the total US hog inventory stood at 74.3 million head as of September 1, a 1.5% decrease from the previous year. Additionally, stocks of frozen pork bellies fell by 35% from a month earlier.