Live cattle futures are declining by $1.40 to $1.70 at midday, as cash trade reported light activity with Southern bids between $223-227 on Thursday. Earlier, the Fed Cattle Exchange online auction showed no sales for 928 head, with bids at $220-221. Feeder cattle futures are down 60 to 82 cents today, with the CME Feeder Cattle Index up by $5.36 to $316.76 on July 8.
In a significant development, USDA Secretary Rollins announced a suspension of animal imports from Mexico following the discovery of a New World Screwworm case just 370 miles from the US/Mexico border. Meanwhile, President Trump announced new 50% tariffs on Brazilian goods, effective August 1, impacting beef imports from Brazil, which has been a major supplier to the US this year.
Export sales data for the week of July 3 shows 11,566 MT of beef sold, primarily to Japan (4,000 MT) and South Korea (3,800 MT). Wholesale boxed beef prices are also trending lower, with Choice boxes down $1.78 to $384.67 and Select boxes down $1.51 to $371.76/cwt. Estimated cattle slaughter was reported at 117,000 head on Wednesday, bringing the weekly total to 349,000 head, lower than last week and the same week last year.
