LIVESTOCK-CME lean hog futures ease on Trump tariff worries

By Renee Hickman

Jan 31 (Reuters) - Chicago Mercantile Exchange lean hog futures fell on Friday as traders braced for U.S. President Donald Trump to impose potential tariffs on imports from Canada and Mexico, set to go into effect on Feb. 1.

Feeder cattle and live cattle futures finished higher on strength in the cash cattle trade, according to analysts.

The most-active CME April lean hog contract LHJ25 ended down 1.575 cents at 90.35 cents per pound after rising on Thursday to its highest level since Dec. 3.

Most-active CME April live cattle futures LCJ25 settled up 0.8 cent to 202.3 cents per pound after reaching their lowest point in a week. CME March feeder cattle FCH25 gained 2.525 cents to end at 275.725 cents per pound.

Traders are worried about the effect on pork exports of proposed 25% tariffs on goods from Canada and Mexico, said Karl Setzer, partner at Consus Ag Consulting. Analysts have warned that such tariffs are likely to result in retaliation that could hurt the U.S. agricultural exports.

Mexico is the biggest export market for U.S. pork and a major buyer of hams.

For cattle, the cash market was firm, giving support to futures, Setzer said.

CME live cattle LCc1 and feeder cattle FCc1 reached record highs in front-month contracts this week as demand for beef remained high and inventories tight.

The size of the U.S. cattle herd has dropped to its lowest level since 1951, the U.S. Department of Agriculture said on Friday, fueling expectations that high beef prices will rise further.

A temporary U.S. ban on Mexican cattle shipments after the discovery of New World screwworm in Mexico also continued to support prices.

Mexico did not provide an update on the situation, after Mexican President Claudia Sheinbaum said on Thursday that the head of Mexico's Ministry of Agriculture would appear at her daily press conference on Friday to discuss the reopening of cattle exports to the U.S.

Boxed beef prices also firmed, with choice cuts gaining $0.20 to $327.68 per hundredweight (cwt) and select cuts up $1.17 to $317.07 per cwt, according to USDA.