CHICAGO, May 12 (Reuters) – Chicago Mercantile Exchange live cattle and feeder cattle futures fell on Tuesday amid expectations that the federal government would facilitate more beef imports into the U.S.
President Donald Trump’s administration was “fine-tuning” potential presidential executive orders aimed at reducing domestic beef prices, a White House official said after a delay in signing actions that were expected on Monday.
Trump had been considering executive actions to allow increased beef imports into the U.S. and additional government support to help ranchers rebuild the American cattle herd that has dwindled to its lowest level in 75 years.
Beef supplies may expand in the short-term if Trump allows countries to temporarily ship unlimited volumes of beef into the U.S. market at lower tariff rates, the American Farm Bureau Federation said. However, the policy would weaken incentives for ranchers to rebuild domestic herds, the federation said.
“Ranchers are finally starting to recover from years of losses,” said Zippy Duvall, Farm Bureau president. “Any plans to increase beef imports are extremely worrisome and could undermine the fragile recovery ranchers are experiencing.”
CME June live cattle closed down 1.700 cents at 247.700 cents per pound. August feeders slid 5.750 cents to 356.550 cents per pound.
In the cash market, cattle traded at $260 per hundredweight in Kansas and Texas on Monday, up about $4 from the previous week, traders said.
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.
“Encouraging additional imports risks weakening incentives for ranchers to retain heifers and rebuild domestic cattle inventories over the long run,” the Farm Bureau said.
In CME’s lean hog market, June futures tumbled 1.800 cents to 98.425 cents per pound and set the lowest price since December. (Reporting by Tom Polansek; Editing by Shailesh Kuber)
About The Author
