Lean Hog Futures Hit Contract Highs on Weak Dollar

Cattle markets ease as weather outlook improves

Jan. 29, 2026 at 5:47am

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Lean hog futures surged to contract highs on the Chicago Mercantile Exchange, supported by a sharply weaker U.S. dollar that has made American commodities more attractive to global buyers. Meanwhile, cattle futures moved lower after gains earlier in the week tied to extreme cold weather concerns.

Why it matters

The rise in lean hog futures and the decline in cattle futures reflect the ongoing volatility in the livestock markets, which are influenced by factors such as currency exchange rates, weather conditions, and consumer demand.

The details

Lean hog futures rallied roughly 19% since posting a seven-month low in November, driven in part by renewed fund buying and improving nearby demand. Wintry conditions across key production regions have continued to disrupt livestock processing and animal performance, leading to lower hog slaughter. Cattle futures, on the other hand, moved lower as the weather outlook improved, and the region began to thaw. U.S. cattle supplies remain historically tight after prolonged drought forced producers to reduce herd size to the smallest level in decades.

  • On Tuesday, CME April lean hog futures settled up 0.100 cent at 96.825 cents per pound after earlier touching a contract high of 97.550 cents.
  • On Tuesday, hog slaughter was estimated at 483,000 head, down from 488,000 head a week earlier, according to the U.S. Department of Agriculture.
  • On Tuesday, CME February live cattle fell 0.425 cent to 235.600 cents per pound, while March feeder cattle declined 0.600 cent to 362.000 cents per pound.

The players

Matt Wiegand

A commodity broker with FuturesOne.

StoneX

An analysis firm that noted the weather impacts on the cattle market should begin to loosen up as the region thaws.

U.S. Department of Agriculture

The government agency that provided the hog slaughter data.

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What they’re saying

“There's just enough tailwind from the cheap dollar and good enough nearby demand.”

— Matt Wiegand, commodity broker

“Weather impacts on the cattle market should begin to loosen up starting today as the region thaws.”

— StoneX, analysts

What’s next

The USDA is scheduled to release its biannual U.S. cattle inventory report on Friday, a closely watched update for livestock markets.

The takeaway

The volatility in the livestock markets, driven by factors such as currency exchange rates, weather conditions, and consumer demand, highlights the ongoing challenges faced by producers and the importance of closely monitoring market trends and government reports to make informed decisions.