Chicago live cattle futures leveled out to finish on either side of unchanged, Tuesday, after days of precipitous declines. Feeders continued to fall.
Most-active December live cattle contracts closed at 226.575 cents a pound, down 0.600 cents. February contracts rose by 0.100 cents to settle at 224.100 cents per pound.
Most-traded January feeder cattle futures closed at 324.875 cents a pound, down 9.550 cents. March feeders settled at 319.650 cents per pound, down 11.650 cents.
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Choice boxed beef ended the afternoon at $379.65 per cwt, up $1.77 the USDA reported. Select beef closed at $360.00 per cwt, down $1.66.
Cattle futures tumbled after U.S. President Donald Trump urged cattle ranchers to lower prices, while infuriating them with a plan to quadruple low-tariff imports of Argentine beef. Ranchers said increased imports threaten their livelihoods and that Trump should support demand for U.S. products.
Traders also anticipated that Trump might roll back 50 per cent tariffs on Brazil, which slowed beef imports from that country.
This week, Mexico’s agriculture minister is expected to travel to Washington with the aim of reaching an agreement on reopening the border to Mexican cattle. Since May, Washington has mostly blocked imports of Mexican cattle to keep out New World screwworm, further tightening U.S. supplies.
Most-active December lean hog futures closed at 80.825 cents a pound, down 0.675 cents. February contracts settled at 82.450 cents per pound, down 0.950 cents. Pork carcass cutout value sat at $100.02 per cwt in the USDA’s afternoon report, down $1.06 from Monday.
Pork processing giant Smithfield Foods said on Tuesday its quarterly revenue and profits jumped as it increased sale prices and saw strong consumer demand.
“We’re very poised to see elevated pork markets, especially when you look at how the protein sector is sitting right now with beef being so high,” Donovan Owens, president of Smithfield’s fresh pork business, said on a conference call.
–With files from Reuters
