Hog prices steady amid shifting trade outlook - CME

Live cattle and feeder cattle futures jumped on the Chicago Mercantile Exchange (CME) on Wednesday in a turnaround from recent sell-offs, reported Reuters. 

The markets were due to rise after US President Donald Trump fuelled sharp declines by saying that beef prices were too high, traders said. Trump has said the country could import more beef from Argentina to lower US prices.

This week, traders said Trump may also dial back tariffs on Brazilian goods after duties he imposed this summer slowed imports of beef from Brazil. Brazil's President Luiz Inacio Lula da Silva said the two had a positive meeting on Sunday.

However, US duties remained in place.

"US cattle futures rallied on the hope that the tariffs will keep out competing supplies for now," commodity firm StoneX said.

CME December live cattle futures closed up 4.325 cents at 230.900 cents per pound.

CME November feeder cattle climbed 8.675 cents to end at 342.075 cents per pound after hitting their lowest price since August 4 on Tuesday.

The exchange said daily trading limits will revert to their typical levels after it temporarily expanded them due to steep losses.

Managed funds have maintained a net long position in cattle markets, analysts said, while recent headlines over beef prices prompted some to liquidate.

"Funds continue to liquidate their position in cattle with the bloom off the rally," StoneX said.

Beef and cattle prices have surged as the US herd has shrunk to its smallest size in decades following a years-long drought that burned up pasture lands.

Trump's administration further tightened US supplies by blocking cattle imports from Mexico to keep out the flesh-eating parasite New World screwworm.

Mexican Agriculture Minister Julio Berdegue said Mexico and the US had not yet set a date to resume Mexican cattle exports.

In the hog market, CME December lean hog futures eased 0.05 cent to 80.775 cents per pound.