Chicago Mercantile Exchange (CME) live cattle and hog futures closed lower on Tuesday as the trade war between the US and China continued to escalate and create fears that consumer demand would be affected, Reuters reported, citing analysts.
CME June live cattle futures fell 0.550 cent to end at 193.625 cents per pound, while May feeder cattle futures closed up 0.450 cent at 271.725 cents per pound.
In the lean hog market, June futures dropped 0.275 cent to finish at 89.775 cents per pound. The contract reached its lowest point since August 20, 2024, the previous day.
Cattle and hog futures plunged on Monday as US President Donald Trump said he would impose an additional 50% duty on US imports from China on Wednesday if the world's No. 2 economy did not withdraw the 34% tariffs it had imposed on US products last week. Those Chinese tariffs had come in response to 34% duties announced by Trump.
Then on Tuesday, Trump said the US would raise tariffs on goods imported from China into the US to 104%.
The escalation in the trade war between the two countries has led to fears of a US economic downturn, which could impact consumer demand for beef and pork, according to analysts.
Livestock futures saw a bounce at the start of the day. They headed into oversold territory the previous day, according to Karl Setzer, partner at Consus Ag Consulting.
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