LIVESTOCK-CME livestock futures fall on tariff impact fears

By Renee Hickman

CHICAGO, Feb 28 (Reuters) - Chicago Mercantile Exchange livestock futures took a dive on Friday as a jittery market reacted to the threat of tariffs from U.S. president Donald Trump and their impact on the wider economy, according to analysts.

CME April live cattle futures LCJ25 settled down 3.475 cents at 192.650 cents per pound.

April feeder cattle futures FCJ5 ended down 2.550 cents at 273.000 cents per pound.

April lean hog futures LHJ25 fell 0.700 cent to settle at 83.675 cents per pound, hitting their lowest point since October 9.

Friday was a risk-off trading day, according to Dan Norcini, an independent trader, with sell offs occurring throughout commodities markets.

On Thursday, Trump said in a social media post that new tariffs against imports from Mexico and Canada, and additional tariffs on Chinese goods, are on track to begin March 4, contradicting his statements on Wednesday that they might be delayed until April.

Market players are concerned about the possibility of retaliation against U.S. agricultural exports by impacted countries, and analysts say the tariffs are likely to stoke U.S. inflation.

Fears among investors that beef demand will not hold up as consumers become more cash-strapped sent cattle futures spiraling, said Norcini, while worries that Mexico, a major importer of U.S. pork, will take retaliatory action, drove lean hog futures down.

Volatility in the wholesale pork market also pressured lean hog futures, said Norcini.

The U.S. Department of Agriculture priced pork bellies at $156.20 per hundredweight (cwt) on Friday afternoon, down $22.88 from the previous day, and carcasses at $98.42 per cwt, down $2.54 from the previous day.

In boxed beef, the USDA priced choice cuts at $311.82 per cwt, up $0.64 from Thursday. The agency priced select cuts at $302.06 per cwt, down $0.07 from the previous day.