US hog and cattle futures fluctuate amid supply and demand shifts

Lean hog futures on the Chicago Mercantile Exchange (CME) reached life-of-contract lows on Tuesday, driven by high US hog supplies and declining wholesale pork prices. The US Department of Agriculture reported the wholesale pork carcass cutout at $87.50 per hundredweight, the lowest level since February 2024. Analysts noted that pork demand is facing pressure from abundant low-priced chicken supplies and steady beef demand from retailers.

CME live cattle futures also declined, retreating from one-month highs reached during the session. While prices eased, cattle futures maintained some support due to tight US cattle supplies and expectations for strong cash cattle trades. Traders are currently adjusting positions in anticipation of the monthly USDA Cattle on Feed report. Analysts expect the report to show approximately 11.268 million cattle in US feedlots as of September 1, representing a 1.7% increase from the previous year.