CHICAGO, May 7 (Reuters) - Chicago Mercantile Exchange
live cattle and feeder cattle futures ticked down on Wednesday
on falling equity markets and long liquidation, traders said.
Hog futures tilted downward as Chinese retaliatory tariffs
against U.S. agricultural products weighed. China is a major
importer of U.S. pork.
"The huge import tariffs takes away that market," Doug
Houghton, analyst at The Brock Report, said.
CME June live cattle futures fell 1.15 cents to
close at 212.525 cents per pound. August feeder cattle futures
fell 0.6 cent to end at 298.60 cents per pound.
Cattle futures have continued to draw underlying support
from a strong cash market, high boxed beef prices and resilient
consumer demand for beef. However, some traders worry that
weakening consumer sentiment and shaky equity markets could
dampen demand for beef and that some may trade down to less
pricey meats such as chicken.
Choice cuts of boxed beef rose $1.43 to $346.10 per
hundredweight on Wednesday morning, while select cuts rose 94
cents to $333.91 per hundredweight, according to U.S. Department
of Agriculture data.
CME June lean hog futures fell 0.25 cent to close at
97.325 cents per pound.
Though a planned meeting between senior U.S. and Chinese
officials boosted hopes for easing tensions earlier in the
session, sentiment soured after U.S. President Donald Trump said
he would not preemptively lower tariffs on China.
A lack of clear details on trade negotiations has left
traders impatient, and market players are closely monitoring
twists in the two countries' trade relationship.