December 4, 2018 / 10:39 PM / 8 days ago

LIVESTOCK-CME lean hogs slip on U.S.-China trade truce worries

    By Karl Plume
    CHICAGO, Dec 4 (Reuters) - U.S. lean hog futures fell for a
second consecutive session on Tuesday on concern over a trade
truce agreement reached over the weekend between the United
States and China, the world's top hog and pork market.
    Global stock markets tumbled on Tuesday as optimism waned
that the United States and China could quickly resolve their
trade dispute.             
    At a meeting between the world's top two economies on
Saturday, the White House agreed to delay new tariffs during a
90-day truce period, while Beijing pledged to purchase more
agricultural products from U.S. farmers immediately. U.S. pork
and soybeans were expected to represent the bulk of that buying.
    "The hogs and the S&P are going down, taking risk premium
out of the market because of disappointment in the overall U.S.
China trade deal," said Mike Zuzolo, president of Global
Commodity Analytics.
    U.S. President Donald Trump said he was open to extending
the 90-day trade truce window but also warned he would revert to
tariffs if the two sides could not resolve their differences.
            
    China is expected to need large pork imports as vast numbers
of its domestic hogs have been culled due to the spread of
African swine fever to farms across the country. But steep
import duties imposed on U.S. pork during the tit-for-tat trade
fight remain in place.
    Chicago Mercantile Exchange February lean hogs       
settled down 0.850 cent at 66.050 cents per pound while April
       fell 0.475 cent at 70.750 cents.
    Live cattle futures were higher, lifted by firm beef prices
and expectations for at least steady cash cattle sales this
week. Harsh U.S. Plains weather also underpinned the market as
snow and frigid temperatures were seen slowing cattle growth and
movement.
    CME February live cattle futures         settled up 1.475
cents at 121.650 cents per pound. January feeder cattle futures
        ended down 0.100 cent at 144.400 cents.
    

 (Reporting by Karl Plume; Editing by Lisa Shumaker)
  
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