CHICAGO, Nov 18 (Reuters) – Chicago Mercantile Exchange live cattle and feeder cattle futures slumped on Tuesday as traders waited for U.S. inventory data and assessed prospects for beef imports, analysts said.
Lean hog futures hit their lowest level in about seven months.
Traders were waiting for the U.S. Department of Agriculture to issue a monthly Cattle on Feed report on Friday, after the agency did not release the report in October due to the federal government’s shutdown.
Analysts estimated the inventory of cattle on feed in U.S. feedlots on November 1 was down 2.2% from a year earlier, according to a Reuters poll.
U.S. cattle supplies have dwindled to their lowest level in decades after a years-long drought burned up pasture lands and hiked feeding costs.
CME February live cattle futures ended 0.925 cents lower at 220.85 cents per pound. Earlier in the session, the contract reached its highest price since November 13.
CME January feeder cattle slipped 0.225 cent to close at 326.050 cents per pound. The contract earlier reached its highest level since November 12.
Traders continued to digest U.S. President Donald Trump’s moves to reduce tariffs on food imports, which could bring more beef into the country.
Feeling the heat from Americans worried about inflation, Trump told owners, operators and suppliers of hamburger chain McDonald’s on Monday that his administration was making progress in combating inflation, but more work needed to be done.
Trump’s administration on Thursday announced framework trade deals that, once finalized, will eliminate tariffs on certain foods and other imports from Argentina, Ecuador, Guatemala and El Salvador, with U.S. officials eyeing additional agreements before the year’s end.
On Friday, Trump rolled back tariffs on more than 200 food products, including beef.
In the hog market, CME February futures finished down 1.400 cents at 78.025 cents per pound. The contract dropped to its lowest price since April 24.
U.S. hog supplies are ample, and strong slaughter rates have left plenty of pork in the marketplace, brokers said.
(Reporting by Tom Polansek in Chicago; editing by Alan Barona)
