Live Cattle Futures Decline Amid Tariff Pressures
Live cattle futures experienced significant losses on Monday, dropping between $3.70 and $4.50 as the weak trend continues into the new week. Notably, there were no deliveries recorded on the first notice day for April live cattle. Last week’s cash trade saw prices reported at $208 in the Southern region, reflecting a decline of $1 to $2 compared to the previous week. In the North, sales remained steady or fell by $1, trading between $212 and $213.
Feeder cattle futures also faced setbacks, dropping $1.60 to $3.60 in the nearby contracts. The CME Feeder Cattle Index decreased by $1.95 on April 4, bringing the average price to $290. On Monday, only 1,589 head were sold at the OKC feeder cattle auction, indicating price reductions of $5 to $10 for feeder steers and a more significant drop of $15 for calves over 500 pounds. Heifer prices fell by $12 to $15, while calves decreased by $20 to $25.
In a related economic context, President Trump responded to China’s retaliatory tariff of 34% by threatening an additional 50% tariff on Chinese goods unless the 34% is repealed. He set a deadline of Tuesday, April 8, for China to withdraw its tariffs. Furthermore, concerns have arisen regarding tariffs imposed on Japan. On Monday afternoon, President Trump instructed Treasury Secretary Bessent and USTR Greer to initiate negotiations with Japan.
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According to the USDA’s National Wholesale Boxed Beef report, prices increased on Monday afternoon, with the Choice/Select spread narrowing to $20.20. Choice boxed beef rose by $1.05, reaching $339.50 per cwt, while Select increased by $2.12 to $319.30. The estimated federally inspected cattle slaughter on Monday was 108,000 head, which is up 4,000 head from the previous Monday but down 12,384 head compared to the same week last year.
Apr 25 Live Cattle closed at $198.925, down $3.700.
Jun 25 Live Cattle closed at $194.175, down $4.025.
Aug 25 Live Cattle closed at $190.525, down $4.175.
Apr 25 Feeder Cattle closed at $277.825, down $1.600.
May 25 Feeder Cattle closed at $271.275, down $3.600.
Aug 25 Feeder Cattle closed at $278.050, down $3.000.
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 details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein reflect the views of the author and do not necessarily represent those of Nasdaq, Inc.
