Cattle Prices Face Pressure but Receive Bullish USDA Data; Lean Hog Futures Hit Yearly Lows
Cattle futures faced downward pressure in early trading after President Donald Trump announced a temporary policy allowing additional ground beef imports without affecting tariff quotas. However, the market recovered by Friday's close as traders absorbed the news. The U.S. Department of Agriculture (USDA) reported lower-than-expected cattle placements and marketings for July 2026, offering some support to futures prices. The USDA also noted a decline in feedlot placements during July—11% below the previous year—which is bullish for future supply concerns. Meanwhile, lean hog futures continued their downward trend, hitting a 12-month low amid weak cash market conditions and expectations of increased slaughter volumes ahead. The CME lean hog index fell further as summer demand waned. Additional challenges include high heat in cattle-producing regions affecting weight gains and the potential disruption to U.S.-Mexico cattle imports due to New World Screwworm detected in Mexico.
Topics: cattle futures trading hog prices USDA report