Chicago Mercantile Exchange (CME) cattle futures settled lower on Monday on a spate of profit-taking after surpassing moving averages, though the continued tight supply of cattle, a strong cash trade and resilient consumer demand kept a floor on prices, reported Reuters.
CME June live cattle settled 1.25 cents lower to 251.75 cents per pound. August feeders ended down 5.575 cents to 366.60 cents per pound.
Boxed beef cutout prices turned higher on Monday: Choice cuts were priced $2.54 higher at $391.65 per hundredweight and select cuts rose $1.83 to $388.88 per cwt, according to US Department of Agriculture data.
Consumer demand is expected to strengthen amid warmer weather and the upcoming start of grilling season.
Beef packer margins continued to worsen: Packers were estimated to lose $225.55 per head of cattle slaughtered on Monday, compared with $156.80 per head the week prior, according to Denver-based livestock marketing advisory service Hedgers Edge.
Tyson Foods reported better-than-expected quarterly earnings and raised its full-year income forecast on Monday, as rising chicken sales helped counter a sharp drop in demand for high-priced beef.
Protein-hungry but cash-strapped consumers have shifted toward buying more affordable types of meat, such as chicken and pork, as beef prices have set records due to dwindling US cattle supplies.
Tyson CEO Donnie King said he stayed awake many nights thinking about cattle supplies, which fell to a 75-year low in 2026 following a persistent drought in the western US that burned up grazing lands.
Benchmark June lean hogs ended 1.525 cents lower to 99.75 cents per pound.
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