July 11, 2018 / 8:16 PM / in 9 months

LIVESTOCK-Hog, cattle futures extend decline on trade war worries

    By Michael Hirtzer
    CHICAGO, July 11 (Reuters) - U.S. livestock futures fell 1
percent or more on Wednesday, extending declines on technical
selling and fears reduced pork and beef exports could result in
burdensome supplies in domestic meat markets, traders and
analysts said.
    Most Chicago Mercantile Exchange lean hog futures contract
        slumped to lifetime lows for the third straight session
while live cattle futures         declined for the seventh
consecutive session.
    The lower livestock prices came as many other commodities
from corn to soybeans to crude oil fell sharply in the wake of
the President Trump's administration announcement on Tuesday of
a new round of tariffs against China, a move Beijing said it
would retaliate against.             
    "Everyone is running scared," Steiner Consulting Group
analyst Altin Kalo said of cattle and hogs traders. "This whole
thing with the tariffs is escalating and it seems there's no end
in sight, and it looks like (agriculture commodities) are taking
the brunt of it."
    Two major buyers of U.S. pork, China and Mexico, have
imposed tariffs on American imports of the meat, and the hog
industry that has expanded in part to cater to the export market
now was faced with the potential of too much supply.
    "That's the worry here - we have protein we need to sell,"
Kalo added.
    The U.S. Department of Agriculture will update meat and
livestock supply and demand forecasts in a monthly report on
Thursday, in data expected to take the import tariffs into
    Most-active CME August lean hog futures        fell 0.975
cent to 68.800 cents per pound while deferred contracts for hog
prices this autumn, which could be more affected by the tariffs
than the prompt supplies, notched even larger declines. December
hogs        plummeted 3.475 cents to 46.625 cents per pound.
    CME August live cattle        eased 1.600 cent to 103.850
cents per pound and CME August feeder cattle        was down
2.450 cents to 149.400 cents per pound, with each contract
declining to the lowest level since June 29.

 (Reporting by Michael Hirtzer; Editing by Richard Chang)
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