Live Cattle Futures Surge Amid Supply Concerns and Trade Developments

On Monday, live cattle futures experienced gains ranging from $1.50 to $2.15. Last week’s cash trade concluded with prices at $218-220 in the South and $225-228 in the North. Feeder cattle futures also saw significant rallying, with increases of $5.12 to $6.10 in the front months. Notably, the CME Feeder Cattle Index rose by $4.89 on May 9, averaging $301.03.

USDA Implements Import Suspension

USDA Secretary Rollins announced over the weekend a suspension of live cattle imports from Mexico. This measure comes in response to the approach of the New World Screwworm, now reported to be just 700 miles from the US border. The USDA stated, “This import suspension will persist on a month-by-month basis, until a significant window of containment is achieved.”

Progress in US-China Trade Talks

Recent discussions between US and Chinese trade representatives yielded positive results. An agreement was reached to reduce tariffs by 115% for both countries over the next 90 days. The US lowered its tariff on Chinese goods to 30%, while China reduced its rate to 10%. These developments follow a series of beef sales cancellations by Chinese buyers.

Wholesale Boxed Beef Prices Rise

On Monday afternoon, USDA’s National Wholesale Boxed Beef prices increased, with the Chc/Sel spread reaching $12.91. Choice boxes fell by $2.17, settling at $348.14, whereas Select boxes saw an increase of $4.06, priced at $335.23 per hundred pounds. The USDA estimated federally inspected cattle slaughter for Monday at 99,000 head—down 10,000 from the previous Monday and down 15,524 from the same week last year.

Live and Feeder Cattle Closing Prices

Jun 25 Live Cattle closed at $216.825, up $2.150.

Aug 25 Live Cattle closed at $211.600, up $2.025.

Oct 25 Live Cattle closed at $208.450, up $1.500.

May 25 Feeder Cattle closed at $303.100, up $5.125.

Aug 25 Feeder Cattle closed at $306.375, up $6.075.

Sep 25 Feeder Cattle closed at $305.100, up $6.075.

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are provided solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.