Cattle futures sink amid fears of recession, tariff retaliation - CME
June lean hog futures ease further
4 April 2025
2 minute read
By: Chicago Mercantile Exchange (CME) live cattle and feeder cattle futures fell sharply on Thursday as US President Donald Trump's new tariffs fuelled concerns about a recession and retaliation from other nations, reported Reuters.
Global investors grappled with rising chances of an economic downturn and a sprawling trade war, after Trump on Wednesday announced a 10% tariff on most US imports and much higher levies on dozens of other countries.
Broad-based selling spilled into livestock markets, as analysts said that economic weakness threatens demand for pricey beef. They added that retaliation to Trump's tariffs could hurt export sales of US beef to major buyers such as Japan and South Korea.
CME June live cattle futures fell 2.7 cents to close at 204.7 cents per pound after setting a contract high at 207.725 cents on Wednesday. May feeder cattle sank 4.8 cents to 283.125 cents per pound.
Historically low US cattle supplies in recent years have driven up imports of beef that is mixed with domestic supplies to make hamburger meat for retailers and restaurants. Now, Trump's tariffs threaten to raise prices for imports from nations including Australia, analysts said.
Australian beef farmers and traders said they would pass on the extra costs of US tariffs to the American consumer.
"The biggest concerns for restaurant operators—from community restaurants to national brands—are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing prices up for consumers," said National Restaurant Association CEO Michelle Korsmo.
Weekly US beef export sales were 9,300 metric tons for 2025, up 16% from the previous week but down 19% from the prior four-week average, the US Department of Agriculture (USDA) said. Sales to China remained minimal after Beijing last month allowed export registrations for US beef facilities to expire.
Weekly US pork export sales of 53,000 metric tons for 2025 were a marketing-year high, according to USDA.
CME June lean hog futures still eased 0.975 cents to close at 95.55 cents per pound.
