Chicago cattle futures made gains for the second day running while lean hog contracts settled with small losses.
Most-active October live cattle futures gained 2.925 cents a pound to close at 229.025 cents. December live cattle settled at 230.900 cents a pound, up 2.425 cents.
Most-traded September feeder cattle contracts closed at 346.250 cents a pound, up 5.650 cents. October feeders gained 5.475 cents to settled at 345.150 cents per pound.
“The trade is still currently in the ‘shadow’ of last Friday’s limit down close,” wrote analyst Jefferson Fosse with Walsh Trading.
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The chart looks similar to what was seen in late July, Fosse said. On July 31 feeders dropped aggressively but set new highs five sessions later.
“Based on the start of this week, I would expect that pattern to continue,” he wrote.
Choice boxed beef was valued at $390.58 per cwt in the USDA’s afternoon report—up $9.06 over Monday. Select boxed beef closed at $365.64 per cwt, up $6.03.
Most-active October lean hog futures closed at 91.600 cents per pound, down 0.175 cents. December lean hogs lost 0.425 cents to settled at 83.800 cents.
U.S. meat packer Smithfield Foods raised its annual operating profit forecast on Tuesday as its hog business rebounded from losses and it resumed exports to China.
Smithfield has reduced risks in its hog business by raising fewer pigs itself and buying more from other producers. It said it expects to produce about 11.5 million hogs this year, down from 14.6 million in 2024.
Livestock feed, often the biggest expense in raising hogs, has also become less expensive owing to low grain prices.
The hog business swung to a quarterly operating profit of $22 million (C$30.3 million) from a $2 million loss a year earlier.
—With files from Reuters. Prices reported in U.S. dollars.
