Chicago Mercantile Exchange hog futures edged down on Thursday, as traders monitored slower-than-anticipated slaughter rates and an unexpectedly low supply of market-ready hogs, analysts said.
Live cattle futures ticked up on strength from rising cash cattle bids in northern states, though poor meatpacker margins meant most packers will remain reluctant to bid up for cattle, traders said.
Most-active CME April lean hog futures LHJ25 edged down 1.225 cents to 93.1 cents per pound.
CME April live cattle futures LCJ25 ended 0.800 cent higher at 196.525 cents per pound. March feeder cattle FCH25 settled up 3 cents at 267.975 cents per pound.
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Chicago Board of Trade corn futures set contract lows and soybean futures sagged on Friday on expectations that beneficial weather for U.S. crops will lead to bumper harvests, analysts said.
Strong consumer demand for pork and beef has added underlying support to futures as Americans remain willing to pay for both pricier beef and more budget-friendly pork.
Snowy, frigid weather has not impacted livestock delivery, but may be adding a floor to futures as market players weigh whether the livestock supply chain may be disrupted by further blizzards forecast for this week.
Traders continued to monitor U.S. President Donald Trump’s threat of reciprocal tariffs on U.S. trading partners for signs that meat might be targeted.
“There hasn’t been a big reaction to tariffs so far,” Rich Nelson, strategist at Allendale, said.
Trump tasked his economics team on Thursday with devising a plan to impose reciprocal tariffs on every country that imposes duties on U.S. imports in a fresh salvo at American friends and foes ramping up prospects for a global trade war.
