Hog markets settle for eighth straight session - CME

Jan 13, 2025

Chicago Mercantile Exchange (CME) cattle futures moved higher on Tuesday as demand for beef stayed strong and meat packers continued to have trouble finding enough cattle for slaughter, Reuters reported, citing market analysts.

CME February live cattle futures ended up 0.375 cent at 195.575 cents per pound, their highest since mid-October, and all other contracts reached lifetime highs during the session.

March feeder cattle settled up 2.375 cents at 267.925 cents per pound, reaching life of contract highs alongside most other contracts during the session.

Cattle futures continued this week's upswing with demand holding strong, inventory likely to stay low for the next few years and a snap of harsh winter weather in the cattle belt that could slow cattle weight gains, said Don Roose, president of US Commodities.

With demand driving costs higher, meat packers spent another day in the red on Tuesday, losing an estimated $20.00 per head, compared with losses of $20.60 per head on Monday and losses of $10.00 a week ago, according to livestock marketing advisory service HedgersEdge.com.

The US Department of Agriculture (USDA) reported that choice cuts of boxed beef on Tuesday afternoon fell $1.31 to $325.79 per hundredweight (cwt). Select cuts jumped $2.10 to $305.43 per cwt.

CME February lean hogs settled lower for an eighth straight session, losing 0.475 cent at 79.175 cents per pound, hitting their lowest trough since Oct. 3, 2024, at 78.825 cents per pound.

The inventory of pigs for slaughter operations is plentiful, said Roose, while pork demand is lower from the US and overseas, with US hog prices significantly higher than China's.

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Video: Swine Industry Advances: Biodigesters Lower Emissions and Increase Profits

Analysis of greenhouse gas (GHG emissions) in the Canadian swine sector found that CH4 emissions from manure were the largest contributor to the overall emissions, followed by emissions from energy use and crop production.

This innovative project, "Improving Swine Manure-Digestate Management Practices Towards Carbon Neutrality With Net Zero Emission Concepts," from Dr. Rajinikanth Rajagopal, under Swine Cluster 4, seeks to develop strategies to mitigate greenhouse gas emissions.

While the management of manure can be very demanding and expensive for swine operations, it can also be viewed as an opportunity for GHG mitigation, as manure storage is an emission source built and managed by swine producers. Moreover, the majority of CH4 emissions from manure occur during a short period of time in the summer, which can potentially be mitigated with targeted intervention.

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