US cattle futures weaken

Published Dec 31, 2024

Tridge summary

Lean hog and cattle futures at the Chicago Mercantile Exchange reached two-month lows due to profit-taking and concerns over demand, both domestically and internationally. Fear of reduced pork demand from China, the world's leading pork importer, due to economic challenges and potential tariff hikes, contributed to the downturn. Post-holiday consumer demand doubts also factored into the decline. In contrast, choice cuts of boxed beef and select cuts increased in price, while pork carcasses decreased. Beef packers experienced significant losses, with profits per head in the red.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Chicago Mercantile Exchange (CME) lean hog futures fell to two-month lows on Monday, hit by profit-taking and growing uncertainty over domestic and export demand in the coming months, Reuters reported, citing market analysts. CME February lean hogs settled down 2.525 cents at 81.625 cents per pound, having reached lows of 80.900 cents per pound earlier in the session, their lowest point since Oct. 21. Fears about future pork demand from China, the world's leading pork importer, weighed on markets Monday, said Karl Setzer, partner at Consus Ag Consulting. China's economy, the second largest in the world, has struggled this year with a property crisis and tepid domestic demand. Possible hikes in US tariffs on China's goods when US President-elect Donald Trump takes office in January are also seen as headwinds to growth. Moreover, said Setzer, with the holiday season winding down in the US, traders are "starting to question how much consumer demand there will be when the holiday ...

Source: The Cattle Site