Lean hog futures ease on Trump tariff worries - CME
Feeder, live cattle futures end higher on cash trade strength
3 February 2025
2 minute read
By: Chicago Mercantile Exchange (CME) lean hog futures fell on Friday as traders braced for US President Donald Trump to impose potential tariffs on imports from Canada and Mexico, set to go into effect on Feb. 1, reported Reuters.
Feeder cattle and live cattle futures finished higher on strength in the cash cattle trade, according to analysts.
The most-active CME April lean hog contract ended down 1.575 cents at 90.35 cents per pound after rising on Thursday to its highest level since Dec. 3.
Most-active CME April live cattle futures settled up 0.8 cent to 202.3 cents per pound after reaching their lowest point in a week. CME March feeder cattle gained 2.525 cents to end at 275.725 cents per pound.
Traders are worried about the effect on pork exports of proposed 25% tariffs on goods from Canada and Mexico, said Karl Setzer, partner at Consus Ag Consulting. Analysts have warned that such tariffs are likely to result in retaliation that could hurt the US agricultural exports.
Mexico is the biggest export market for US pork and a major buyer of hams.
For cattle, the cash market was firm, giving support to futures, Setzer said.
CME live cattle LCc1 and feeder cattle FCc1 reached record highs in front-month contracts this week as demand for beef remained high and inventories tight.
The size of the US cattle herd has dropped to its lowest level since 1951, the US Department of Agriculture said on Friday, fueling expectations that high beef prices will rise further.
A temporary US ban on Mexican cattle shipments after the discovery of New World screwworm in Mexico also continued to support prices.
Mexico did not provide an update on the situation, after Mexican President Claudia Sheinbaum said on Thursday that the head of Mexico's Ministry of Agriculture would appear at her daily press conference on Friday to discuss the reopening of cattle exports to the US.
Boxed beef prices also firmed, with choice cuts gaining $0.20 to $327.68 per hundredweight (cwt) and select cuts up $1.17 to $317.07 per cwt, according to USDA.
