Cattle futures lower on beef imports, consumer demand worries

The U.S. Department of Agriculture priced choice cuts of boxed beef at $382.05 per hundredweight on Wednesday, up $2.30 from the previous day, and select cuts fell $2.81 to $357.64 per hundredweight.

The USDA reported wholesale pork carcass values at $96.11 per hundredweight, down $1.79 from a day earlier.

Brazilian billionaire Joesley Batista, one of the owners of meatpacker JBS, met U.S. President Donald Trump on August 20 to discuss how additional beef supply from Brazil could help tame U.S. beef prices if Trump dropped a 26% import tax, the Wall Street Journal reported on Monday, citing people familiar with the matter.

A day later, Trump said he will temporarily ease beef tariffs to help lower prices and said ground beef imports would sell 25% below current prices, a move that triggered widespread condemnation from the U.S. cattle industry. Reuters could not immediately verify the report.

Meanwhile, high gas prices and decreasing consumer sentiment have lent credence to fears that consumers will pull back on buying pricey beef and trade down to more affordable proteins such as chicken.

Chicago Mercantile Exchange live and feeder cattle futures turned lower on Wednesday as concerns over consumer demand for beef and expectations for temporary easing of beef tariffs weighed on the market.

A soaring rally in grain futures overnight and the previous day also pressured prices as grains are typically used as cattle feed.