Live Cattle Futures Decline Amidst Tariff Changes and Export Data
Live cattle futures experienced losses during Thursday’s trading session, with contracts decreasing by $2.32 to $2.75. Throughout the week, cash activity has been sluggish, with bids reported at $208 in the South and $212 in the North. In the North, light sales occurred between $335 and $345. The Fed Cattle Exchange’s online auction this morning listed 614 head, but no sales were made, with bids ranging from $205 to $207. Feeder cattle futures closed down $3.47 to $4.80, while the CME Feeder Cattle Index rose 66 cents on April 2, averaging at $291.93.
Impact of Recent Tariffs on Market
The “Liberation Day” tariffs introduced on Wednesday notably excluded Mexico and Canada, maintaining exemptions for all USMCA compliant goods. On the other hand, reciprocal tariffs imposed on Japan reached 24%, South Korea 25%, and China 34% (54% including earlier tariffs from this year). For countries exporting to the U.S., baseline tariffs were set at 10% for both Australia and Brazil, effective April 9.
Beef Export Sales and Shipment Figures
According to Export Sales data, the week ending March 27 recorded 9,261 MT in beef sales, showing an increase from the previous week. South Korea accounted for 3,400 MT, while Japan purchased 2,600 MT. Shipments for the week totaled 14,878 MT, with South Korea receiving the largest share of 5,200 MT and Japan getting 3,300 MT.
Additionally, census trade data reported a February total of 227.4 million lbs of beef exported, reflecting a 6.9% decrease from last year and a 1.2% drop from January’s figures.
USDA Wholesale Beef Report
The Thursday afternoon USDA report indicated a decline in the National Wholesale Boxed Beef market, as the Choice/Select spread narrowed to $20.53. Choice boxes fell by $1.53 to $337.37/cwt, while Select boxes decreased by 99 cents to $318.81. USDA’s estimate for Wednesday’s federally inspected cattle slaughter was 124,000 head, bringing this week’s total to 472,000 head. This figure is down 13,000 head from the previous week and 2,460 head from the same week last year.
Live and Feeder Cattle Closing Prices
Apr 25 Live Cattle closed at $208.050, down $2.325.
Jun 25 Live Cattle closed at $204.700, down $2.700.
Aug 25 Live Cattle closed at $201.175, down $2.750.
Apr 25 Feeder Cattle closed at $285.400, down $3.475.
May 25 Feeder Cattle closed at $283.125, down $4.800.
Aug 25 Feeder Cattle closed at $289.300, down $4.400.
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 in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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