LIVESTOCK-CME feeder cattle hit new highs on supplies, cash market

Apr 20, 2023

Chicago Mercantile Exchange feeder cattle futures hit new all-time highs in the nearby contracts on Monday, as bidding wars continue to rally cash prices as more producers show interest in expanding their herds, traders said.

The rally helped give a boost to the pork market, where CME April lean hogs ended up 0.125 cent at 71.875 cents per pound, while most-active June lean hogs rose 1.3 cent at 88.175 cents per pound.

Tight U.S. cattle supplies have been rallying cash prices for weeks, as some cattle producers are gambling on fat profits by putting more animals on pasture this spring, traders said.

As supplies are expected to decline further in the second half of the year, investors on Monday shrugged off a rally in corn futures to further push for new price peaks in the cattle market, said Dan Norcini, an independent livestock trader.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.