LIVESTOCK-CME cattle lower on market rumors

By Heather Schlitz

CHICAGO, May 8 (Reuters) - Chicago Mercantile Exchange cattle futures turned lower on Friday as traders predicted the U.S. may drop import tariffs on Brazilian beef following a White House meeting between U.S. President Donald Trump and Brazilian President Luiz Inacio Lula da Silva.

Lula said on Thursday that three hours of White House talks with U.S. President Donald Trump had helped to stabilize Brazil-U.S. relations that have been strained over Trump's tariff policy but did not announce actions that could increase imports.

Brazilian products still face an extra 10% tariff due to expire in July. But in recent weeks, Brazil has seen signs that its exports could be hit with fresh tariffs connected to a Section 301 investigation into unfair trade practices.

Strong cash cattle trade and resilient consumer demand for beef provided a floor for prices.

Chicago Mercantile Exchange June live cattle LCM26 settled 1.15 cents lower to 248.90 cents per pound. August feeders FCQ26 ended 1.95 cents lower to 364.225 cents per pound.

Boxed beef cutout prices turned higher on Friday afternoon. Choice cuts were priced $1.45 higher at $388.39 per hundredweight, while select cuts rose 59 cents to $385.01 per cwt, according to U.S. Department of Agriculture data.

Beef packer margins continued to be deep in the red as the U.S. cattle herd remains near a 75-year low, with the closure of the U.S.-Mexico border to cattle imports also constricting supply.

Packers were estimated to lose $265.00 per head of cattle slaughtered on Friday, compared with $197.75 lost per head the week prior, according to Denver-based livestock marketing advisory service HedgersEdge.

Benchmark June lean hogs LHM26 ended 0.75 cent lower to 98.625 cents per pound.