CME cattle futures firm on US heat wave, hogs hit June high

By Renee Hickman
CHICAGO, – Chicago Mercantile Exchange cattle futures ended higher on U.S. heat concerns and signs of better consumer demand on Tuesday, while lean hog futures set a 12-week high, analysts said.
Most-active CME October live cattle closed up 2.425 cents at 179.400 cents per pound. Most-active CME October feeder cattle finished 0.900 cent higher at 238.375 cents per pound.
A wave of hot weather hitting much of the central U.S. lent support to prices, analysts said. Heat can slow weight gains in cattle, which often eat less when temperatures rise, or even kill them in extreme circumstances.
“Hot weather tends to take its toll on cattle,” said Karl Setzer, partner at Consus Ag Consulting.
A better than expected consumer confidence reading released on Tuesday was a positive sign for red meat demand, Setzer added. The Conference Board reported U.S. consumer confidence rose to a six-month high in August, reflecting improved perceptions of business conditions over the next six months.
Prices for choice cuts of boxed beef fell on Tuesday afternoon, while prices for select cuts rose slightly, according to U.S. Department of Agriculture data.
Setzer said a USDA cold storage report showing declining frozen pork inventories added support to CME lean hog futures.
USDA reported on Friday that as of the end of July, the total frozen pork inventory came in at 450.7 million pounds, down 5% from June and a 4% drop from the same time a year earlier. Meanwhile, stocks of pork bellies fell 30% from the previous month and down 17% from July 2023.
CME October lean hog futures ended up 1.675 cents to 82.075 cents per pound and hit its highest price since June 3.
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