Cattle futures sink amid fears of recession, tariff retaliation
4 April 2025
2 minute learn
Chicago Mercantile Alternate (CME) reside cattle and feeder cattle futures fell sharply on Thursday as US President Donald Trump’s new tariffs fuelled considerations a few recession and retaliation from different nations, reported Reuters.
World traders grappled with rising probabilities of an financial downturn and a sprawling commerce conflict, after Trump on Wednesday introduced a ten% tariff on most US imports and far larger levies on dozens of different nations.
Broad-based promoting spilled into livestock markets, as analysts stated that financial weak point threatens demand for expensive beef. They added that retaliation to Trump’s tariffs might harm export gross sales of US beef to main patrons corresponding to Japan and South Korea.
CME June reside cattle futures fell 2.7 cents to shut at 204.7 cents per pound after setting a contract excessive at 207.725 cents on Wednesday. Could feeder cattle sank 4.8 cents to 283.125 cents per pound.
Traditionally low US cattle provides in recent times have pushed up imports of beef that’s combined with home provides to make hamburger meat for retailers and eating places. Now, Trump’s tariffs threaten to lift costs for imports from nations together with Australia, analysts stated.
Australian beef farmers and merchants stated they’d move on the additional prices of US tariffs to the American client.
“The largest considerations for restaurant operators—from neighborhood eating places to nationwide manufacturers—are that tariffs will hike meals and packaging prices and add uncertainty to managing availability, whereas pushing costs up for customers,” stated Nationwide Restaurant Affiliation CEO Michelle Korsmo.
Weekly US beef export gross sales had been 9,300 metric tons for 2025, up 16% from the earlier week however down 19% from the prior four-week common, the US Division of Agriculture (USDA) stated. Gross sales to China remained minimal after Beijing final month allowed export registrations for US beef amenities to run out.
Weekly US pork export gross sales of 53,000 metric tons for 2025 had been a marketing-year excessive, in response to USDA.
CME June lean hog futures nonetheless eased 0.975 cents to shut at 95.55 cents per pound.
