US cattle markets tick decrease
7 March 2025
2 minute learn
Chicago Mercantile Change (CME) lean hog futures rose on Thursday, becoming a member of energy within the grain markets after US President Donald Trump briefly exempted items from Mexico from steep tariffs that he had imposed this week, reported Reuters.
Mexico is the largest purchaser of a number of US agricultural merchandise together with pork, corn and wheat, and the tariff threats raised fears of export disruptions, pressuring hog futures earlier this week. Thursday’s exemption helped carry values.
The benchmark CME April hog contract settled up 1.950 cents at 86.650 cents per pound. June hog futures ended up 2.450 cents at 97.025 cents.
On social media platform Reality Social, Trump initially solely talked about a tariff exemption for Mexico, expiring on April 2, however the modification he signed into his order covers Canada as nicely. The three nations are companions within the US-Mexico-Canada Settlement on commerce that Trump negotiated in his first time period as president.
Cattle futures, nevertheless, ticked decrease as cooling commerce tensions signalled that Mexico would proceed to provide feeder cattle to US ranchers.
“We get 100,000 head of feeder cattle from Mexico a month, and the concern was, that (provide) was going to be too high-priced. Now that (commerce) is again to extra regular,” stated Don Roose, president of Iowa-based US Commodities.
CME April reside cattle settled down 0.275 cent at 196.275 cents per pound. April feeder cattle futures fell 1.650 cents to shut at 274.425 cents per pound.
Declines on Wall Avenue fairness markets added strain, elevating considerations about shopper demand for high-priced cuts of beef, Roose stated.
