CHICAGO, May 11 (Reuters) – Chicago Mercantile Exchange live cattle and feeder cattle futures pared losses on Monday after falling earlier in the session on expectations that the U.S. would drop tariffs on imported beef.
U.S. President Donald Trump is set to sign executive orders to allow increased beef imports into the U.S. and to support renewal of the U.S. cattle herd in an effort to address high beef prices, a White House official said.
The official did not provide details on the two executive orders, which come at a time when the U.S. cattle herd has shrunk to its lowest level in 75 years and beef prices continue to climb.
CME June live cattle 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 after dropping 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.
Lula said on Thursday that three hours of White House talks with Trump had helped to stabilize Brazil-U.S. relations that have been strained over Trump’s tariff policy, but did not announce actions that could increase U.S. imports of Brazilian beef.
U.S. beef prices soared to records this year due to strong consumer demand and as the size of the nation’s cattle herd dwindled after a persistent drought burned up grazing lands.
In the hog market, June lean hogs jumped 1.600 cents to 100.225 cents per pound. The contract rebounded after falling on Friday to its lowest level since December.
(Reporting by Tom Polansek; Editing by Shinjini Ganguli)
