Chicago cattle futures continued to climb, Tuesday, on anticipated tariffs on Brazilian beef and low herd numbers.
“Prices remain strong and I do not see a fundamental reason for that to stop,” wrote analyst Jefferson Fosse of Walsh Trading.
The U.S. has threatened to apply a 50 per cent tariff on Brazilian products. Brazilian beef companies had expected to sell some 400,000 tons of beef to the U.S., said Roberto Perosa, head of Brazilian beef lobby Abiec. In the U.S., Brazilian beef is mainly processed to make hamburgers.
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USDA reports on Friday showed a smaller-than-expected beef herd.
Most-active October live cattle contracts settled at 226.450 cents a pound, up 1.675 cents. August live cattle closed at 229.725 cents per pound, up 1.850 cents. Both were fresh highs.
Feeder cattle futures also set new records, with most-traded September contracts closing at 337.075 cents a pound, up 2.525 cents. August futures settled at 336.200 cents a pound, up 2.675 cents.
Choice boxed beef was valued at $364.19 per cwt in the USDA’s afternoon report, down $3.54. Select boxed beef settled at $342.48 per cwt, down $4.37.
Most-active October lean hog contracts closed at 88.725 cents a pound, down 2.150 cents. December lean hogs settled at 80.800 cents, down 2.100 cents a pound.
Pork carcass cutout value was put at $115.85 per cwt, down $2.44 according to the USDA’s afternoon report.
—With files from Reuters. Prices in USD.
