Live Cattle Futures Decline Amid Steady Cash Trade and Tariff Delays
Live cattle futures saw a decrease on Thursday, affected by steady to weaker cash prices this week. Closing contracts fell between 7 to 50 cents. Cash trade established itself around $196-$197 in the Southern regions, while Northern trade remained slow with bids between $195 and $196. The online Fed Cattle Exchange auction from Central Stockyards recorded sales of 3 lots at $197 using their BidTheGrid™ method. Feeders bore the brunt of the market’s downward pressure, facing challenges from tariffs delays coupled with rising corn prices; futures dropped between $1.22 and $2.07. The CME Feeder Cattle Index was down $1.78 on March 5, averaging at $276.09.
Political Developments Impacting Market Dynamics
Following several days of dialogue regarding trade, President Trump has decided to extend the pause on all tariffs associated with the USMCA trade agreement with Mexico and Canada for an additional month. Concurrently, Canada has postponed its planned tariffs on $125 billion worth of U.S. goods, now set for April 2.
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USDA Export Sales data revealed a total of 13,393 MT in beef bookings for the week ending February 27, marking a three-week low and the third lowest of the marketing year. South Korea was the leading buyer, purchasing 3,300 MT, while Japan acquired 2,900 MT. Shipments totaled 13,203 MT, the second-lowest of the marketing year, with Japan receiving 3,800 MT and South Korea 3,400 MT.
Additionally, beef exports for January amounted to 230.19 million lbs, based on Census data converted to a carcass basis. This figure represents the lowest January total since 2017 and signifies an 11.1% decrease from December.
Boxed Beef Prices and Slaughter Estimates
The USDA’s National Wholesale Boxed Beef prices displayed mixed results in the Thursday afternoon report, with the Chc/Sel spread narrowing to $9.61. Choice boxed beef declined by 42 cents to reach $313.12/cwt, while Select increased by 98 cents to $303.51. On Thursday, federally inspected cattle slaughter was estimated at 122,000 head, bringing the weekly total to 467,000 head. Though this represents an increase of 10,000 head compared to the prior week, it is still down by 19,969 head from the corresponding week last year.
Market Close for Live Cattle and Feeder Cattle
Apr 25 Live Cattle closed at $196.275, down $0.275,
Jun 25 Live Cattle closed at $192.625, down $0.075,
Aug 25 Live Cattle closed at $190.975, down $0.300,
Mar 25 Feeder Cattle closed at $274.025, down $2.075,
Apr 25 Feeder Cattle closed at $274.425, down $1.650,
May 25 Feeder Cattle closed at $273.850, down $1.225,
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.
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