Lean hog futures pulled back on Monday at the Chicago Mercantile Exchange (CME) following a strong rally in the previous session.
The shift came after USDA’s latest Hogs and Pigs report showed a sharper contraction in the U.S. hog herd than analysts had expected. As of September 1, the national inventory sat at 74.5 million head, down 1.3% from last year. Pre-report expectations had called for a modest 0.3% increase, making the report more bearish than anticipated.
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CME December hogs settled 0.70 cents lower at 90.35 cents per pound.
While traders took profits after last week’s surge, the supply-side picture continues to evolve as producers weigh tighter numbers against broader market demand.
Beef & Cattle Weigh on Protein Complex
Cattle futures also moved lower, pressured by seasonal weakness in wholesale beef values:
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December live cattle finished 0.475 cents lower at 233.825 cents/lb.
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November feeder cattle slipped 0.60 cents to 353.875 cents/lb.
USDA’s boxed beef cutout reflected the ongoing post-grilling season slowdown, with choice down to $370.68/cwt and select sliding to $348.89/cwt.
The agency also reported U.S. feedlot inventories at 11.1 million head, down 1.05% year-over-year, a slightly larger decline than expected.
Market Caution: Livestock Pest Concerns
Beyond fundamentals, traders remain cautious over the spread of New World screwworm after a confirmed case in Mexico less than 70 miles from the U.S. border. The pest poses a serious threat to livestock health and productivity, adding a layer of risk sentiment across protein markets.
