Live Cattle Futures Dip Amid Tariff News and Export Reports
On Thursday, live cattle futures have decreased by $1 to $1.30. Cash trade has varied, reporting initial sales of $195 in the southern regions, with more recent transactions reaching $197. In contrast, northern activity remains subdued with bids across the country ranging from $195 to $196. During Thursday morning’s online Fed Cattle Exchange auction at Central Stockyards, sales of three lots occurred at $197, utilizing their BidTheGrid™ method. Concurrently, feeder cattle futures have shown midday losses between $2 and $2.65. The CME Feeder Cattle Index decreased by 88 cents on Tuesday, bringing the average price down to $277.87.
US Tariff Developments
President Trump has decided to postpone a pause on all tariffs under the USMCA agreement with Mexico for another month. While there has been no announcement regarding Canadian tariffs, prior statements suggested a possible exemption could be forthcoming.
USDA Export Sales and Beef Shipment Trends
The recent USDA Export Sales data indicated beef bookings totaled 13,393 metric tons for the week ending February 27, marking a three-week low and the third lowest in the marketing year. Beef shipments for the same week were reported at 13,203 metric tons, the second lowest this marketing year.
According to Census data adjusted to a carcass basis, beef exports in January reached 230.19 million pounds, the lowest figure for January since 2017 and reflecting a decline of 11.1% from December.
Wholesale Boxed Beef Prices and Slaughter Figures
In the USDA’s Thursday morning report, National Wholesale Boxed Beef prices displayed mixed results. The Choice/Select spread narrowed to $7.01, with Choice boxes decreasing by 21 cents to $313.33 per hundredweight (cwt), while Select boxes increased by $3.78 to $306.31. USDA’s Wednesday estimate for federally inspected cattle slaughter was 120,000 head, raising the weekly total to 345,000 head. This figure is 6,000 head higher than the previous week but still down 19,320 head from the same week last year.
Current Market Prices
Apr 25 Live Cattle: $195.350, down $1.200
Jun 25 Live Cattle: $191.700, down $1.000
Aug 25 Live Cattle: $190.050, down $1.225
Mar 25 Feeder Cattle: $273.450, down $2.650
Apr 25 Feeder Cattle: $273.550, down $2.525
May 25 Feeder Cattle: $272.825, down $2.250
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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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