Chicago Mercantile Exchange (CME) livestock futures tumbled on Friday as market uncertainty mounted over US President Donald Trump’s tariff plans and their potential economic fallout, Reuters reported. Analysts warned that the looming tariffs could further strain the wider economy and spark retaliation against US agricultural exports.
Livestock Futures Extend Losses
April live cattle futures settled down 3.475 cents at 192.650 cents per pound, while April feeder cattle futures dropped 2.550 cents to 273.000 cents per pound. April lean hog futures declined 0.700 cent to 83.675 cents per pound, marking the lowest level since October 9.
The widespread sell-off was part of a broader risk-off sentiment across commodities markets, said independent trader Dan Norcini.
Tariff Concerns Stoke Volatility
Investor anxiety escalated after Trump announced on Thursday via social media that new tariffs on imports from Mexico and Canada, along with additional duties on Chinese goods, would take effect on March 4—a reversal from his earlier suggestion that the levies might be delayed until April.
The prospect of retaliatory measures from key trading partners has raised fears that US agricultural exports, particularly pork, could face significant disruption. Mexico, a major buyer of US pork, is widely expected to respond with countermeasures.
Additionally, analysts cautioned that the tariffs could fuel inflation, further weakening consumer demand for beef amid mounting cost-of-living pressures.
Wholesale Prices Add to Downward Pressure
Volatility in the wholesale pork market added to the pressure on lean hog futures. The US Department of Agriculture (USDA) reported pork bellies at $156.20 per hundredweight (cwt) on Friday afternoon, down $22.88 from the previous day, while pork carcasses were priced at $98.42 per cwt, a decline of $2.54.
In boxed beef, the USDA priced choice cuts at $311.82 per cwt, up $0.64, while select cuts edged down $0.07 to $302.06 per cwt.
Outlook Remains Clouded
With geopolitical uncertainties and trade tensions dominating market sentiment, livestock futures are likely to remain volatile. Market participants will closely monitor further tariff developments and their potential impact on global demand for US agricultural products.
