Chicago Mercantile Exchange (CME) live and feeder cattle futures climbed on Wednesday as investors hoped for de-escalation in the US- China trade conflict, reported Reuters.
CME June live cattle futures reached life of contract highs and settled up 1.825 cents at 208.100 cents per pound and August feeder cattle futures ended 0.925 cent higher at 292.175 cents per pound.
US Treasury Secretary Scott Bessent told reporters on Wednesday that the high tariffs currently on imports between the United States and China - 145% on Chinese products and 125% on US products - could not last.
"Neither side believes that these are sustainable levels. As I said yesterday, this is the equivalent of an embargo and a break between the two countries in trade does not suit anyone's interest," Bessent said.
That factor, as well as a strong cash cattle trade, supported cattle futures on Wednesday, according to Doug Houghton, analyst at Brock Associates.
Tight feeder cattle supplies continued to underpin the market, while weaker CBOT corn futures also offered support.
Packers lost an estimated $134.10 per head of cattle, according to livestock marketing advisory service HedgersEdge.com, compared with losses of $77.75 per head a week ago.
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