4 March 2025

2 minute read

By: Global Ag Media

North America

Chicago Mercantile Exchange (CME) live cattle futures fell on Monday, with the benchmark April contract hitting a two-month low as trade tensions and a decline in Wall Street equity markets pressured values, reported Reuters. 

CME April live cattle futures settled down 0.400 cent at 192.250 cents per pound after dipping to 190.100 cents, the contract's lowest since Dec. 26. The contract closed below its 100-day moving average for the first time since mid-November, a bearish chart signal.

CME April feeder cattle futures ended down 0.950 cent at 272.050 cents per pound.

Fears of retaliation to US President Donald Trump's threatened tariffs remained a feature. Trump said 25% tariffs on goods from Mexico and Canada will take effect from Tuesday, stoking fears of a trade war in North America and sending financial markets reeling. 

Cattle futures sometimes take cues from Wall Street markets, where a downturn can cast doubt on consumer demand for pricey cuts of beef.

Also, commodity funds hold a net long position in CME live cattle futures, leaving the market prone to bouts of long liquidation.

Traders shrugged off support from an increase in wholesale beef prices. The US Department of Agriculture (USDA) priced choice cuts at $313.93 per hundredweight (cwt) on Monday afternoon, up $2.10 from Friday. Select cuts were up 36 cents at $302.41.

Monday's cattle slaughter totalled 102,000 head, the USDA said, up from 95,000 a week ago. 

CME lean hog futures eked out a higher close, rallying after early declines. The most-active April contract settled up 0.025 cent at 83.700 cents per pound while June hogs ended up 0.325 cent at 95.350 cents.

Pork prices were up sharply at mid-morning, with the carcass cutout priced more than $7 per cwt higher than Friday, but the USDA's revised afternoon report priced carcasses at $99.79 per cwt, up only $1.37 from Friday.

The USDA reported Monday's hog slaughter at 490,000 head, steady with a week ago.