Cattle futures rise in technical reversal
28 February 2025
2 minute learn
Chicago Mercantile Trade (CME) dwell cattle futures rallied on Thursday on technical shopping for, after easing the day before today on fears over slowing client meat demand and issues over the danger for brand spanking new US tariffs, Reuters reported, citing analysts.
CME April dwell cattle futures settled up 1.500 cents at 196.125 cents per pound.
April feeder cattle futures ended up 2.025 cents at 275.550 cents per pound.
Essentially the most-active April lean hog futures fell 3.925 cents to settle at 84.375 cents per pound and hit their lowest value since October 16.
Climbing cattle futures costs could possibly be attributed to a technical bounce, mentioned Cassie Fish, analyst and creator of the Beef e-newsletter.
Futures took successful the day before today when the Convention Board’s client confidence index dropped 7 factors, the greatest decline since August 2021, to 98.3 this month. These numbers stoked fears of falling meat demand amongst US customers.
Feeder cattle derived extra assist on Thursday from a pointy slide in Chicago Board of Commerce corn futures. Cheaper corn tends to make it inexpensive to feed cattle being fattened on feed tons for slaughter operations.
Nonetheless, merchants remained unsure concerning the influence of US tariffs deliberate for imports from Mexico, Canada and China.
Duties may restrict cattle shipments into the US from Mexico and Canada. Nevertheless, traders additionally worry retaliation by affected nations in opposition to US agricultural exports, together with beef and pork, if the tariffs are carried out.
On Wednesday, US President Donald Trump had raised hopes for a month-long pause on the tariffs, saying they may as an alternative take impact on April 2. However on Thursday, he mentioned in a publish on social media that they’d start on March 4.
