LIVESTOCK-Cattle futures slide as traders brace for more US imports of beef

By Tom Polansek

CHICAGO, Nov 21 (Reuters) - U.S. live cattle and feeder cattle futures dropped to their lowest prices since July on the Chicago Mercantile Exchange on Friday on expectations for increased U.S. imports of beef, after President Donald Trump removed tariffs on Brazilian food products, analysts said.

Trump on Thursday cut the 40% tariffs on products, including beef, that he imposed this summer. The duties had slowed U.S. imports of supplies used to make hamburger meat from the world's biggest beef exporter.

The move followed a similar order by Trump's administration last Friday to remove tariffs on agricultural products from other countries, as the White House makes a U-turn on some duties that have increased the cost of food in the United States.

"Traders are afraid of what President Trump is going to do next," said Dan Norcini, an independent livestock trader.

CME February live cattle futures LCG26 closed down 0.625 cents at 214.775 cents per pound. January feeder cattle futures FCF26 tumbled 2.150 cents to finish at 314.225 cents per pound.

Futures have dropped over the past month after Trump said he was working to lower beef prices for consumers.

Prices set records this year as a years-long drought dried up pasture lands and forced ranchers to slash the country's cattle herd to its smallest size in decades. Demand for steaks and hamburgers remained strong.

After trading ended, Tyson Foods TSN.N said it will close a major beef plant in Lexington, Nebraska, and reduce operations at another facility in Amarillo, Texas. Tight cattle supplies have raised costs for meatpackers.

There were 11.7 million cattle on feed in feedlots as of November 1, down 2.2% from a year earlier, the U.S. Department of Agriculture said in a monthly report. This was in line with analysts' expectations.

The report also confirmed fewer heifers in feedlots last month compared to the previous four years, said Rich Nelson, chief strategist for Allendale.

"There are light signs possibly of expansion starting," he said.

In CME's lean hog market, February futures LHG26 finished down 1.950 cent at 77.700 cents per pound and reached the lowest level since April.

(Reporting by Tom Polansek; Editing by Chris Reese)

((thomas.polansek@tr.com))