Livestock futures fall on tariff impact fear - CME
April lean hog futures fall
3 March 2025
2 minute read
By: Chicago Mercantile Exchange (CME) livestock futures took a dive on Friday as a jittery market reacted to the threat of tariffs from U.S. president Donald Trump and their impact on the wider economy, Reuters reported, citing analysts.
CME April live cattle futures settled down 3.475 cents at 192.650 cents per pound.
April feeder cattle futures ended down 2.550 cents at 273.000 cents per pound.
April lean hog futures fell 0.700 cent to settle at 83.675 cents per pound, hitting their lowest point since October 9.
Friday was a risk-off trading day, according to Dan Norcini, an independent trader, with sell offs occurring throughout commodities markets.
On Thursday, Trump said in a social media post that new tariffs against imports from Mexico and Canada, and additional tariffs on Chinese goods, are on track to begin March 4, contradicting his statements on Wednesday that they might be delayed until April.
Market players are concerned about the possibility of retaliation against US agricultural exports by impacted countries, and analysts say the tariffs are likely to stoke US inflation.
Fears among investors that beef demand will not hold up as consumers become more cash-strapped sent cattle futures spiralling, said Norcini, while worries that Mexico, a major importer of US pork, will take retaliatory action, drove lean hog futures down.
Volatility in the wholesale pork market also pressured lean hog futures, said Norcini.
The US Department of Agriculture priced pork bellies at $156.20 per hundredweight (cwt) on Friday afternoon, down $22.88 from the previous day, and carcasses at $98.42 per cwt, down $2.54 from the previous day.
In boxed beef, the USDA priced choice cuts at $311.82 per cwt, up $0.64 from Thursday. The agency priced select cuts at $302.06 per cwt, down $0.07 from the previous day.
