CME Cattle Futures Recover as US Beef Import Plan Triggers Market Reversal

U.S. to Relax Beef Tariffs in Effort to Address High Prices

Chicago, May 11 - The Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures experienced a reversal of fortunes on Monday, paring losses after initially falling due to expectations that the U.S. would drop tariffs on imported beef.

U.S. President Donald Trump is poised to sign executive orders aimed at allowing increased beef imports into the U.S. and supporting renewal of the U.S. cattle herd. This move comes at a time when the U.S. cattle herd has shrunk to its lowest level in 75 years, contributing to climbing beef prices.

The CME June live cattle futures contract fell to 245.475 cents per pound before closing up 0.500 cent at 249.400 cents per pound. August feeders ended down 1.925 cents at 362.300 cents per pound, having dropped earlier to 357.250 cents per pound. Expectations for increased beef imports from Brazil had weighed on U.S. cattle futures after Trump met Brazilian President Inacio Lula da Silva last week.

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U.S. beef prices have soared to records this year due to strong consumer demand and the dwindling size of the nation's cattle herd, which has been affected by a persistent drought that has burned up grazing lands. This trend is reflected in the hog market, where June lean hogs jumped 1.600 cents to 100.225 cents per pound after rebounding from a Friday low.