US feed cattle futures on Tuesday, June 11, fell in price as traders said the rally on the previous day looked exaggerated in the face of large supplies. At the same time, livestock futures closed higher.

Futures returned to their previous level after a slight rise in days of wounds associated with the cancellation by US President Donald Trump of plans to introduce tariffs on imports of Mexican goods.

The drop in futures prices was due to the traders' apprehension that US duties on Mexican goods would force Mexico, the largest American pork export market, to introduce reciprocal tariffs on American products.

On the Chicago Mercantile Exchange in July, lean pigs fell 1.825 cents to 84.375 cents a pound. August pigs fell 1.875 cents to 82.975 cents per pound.

Livestock most actively traded in August closed at 0.525 cents to 106.825 cents. August feeder cattle fell 1.7 cents to 138.125 cents per pound.

The US Department of Agriculture in its monthly report on Tuesday, June 11, reduced its forecast for pork production by 0.1% - to 27.288 billion pounds from 27.323 billion in May, citing a slower than expected pace of slaughter. However, production was still up 3.7% from £ 26.315 billion in 2018.

The U.S. Department of Agriculture also lowered its forecast for beef production due to lower expectations for the number of cows and heifers to be slaughtered in the second half of the year.