Cattle Futures Face Weekly Losses Amid Tariff Pressures

Live cattle futures experienced notable declines on Friday, with losses ranging from $5.42 to the maximum allowed limit of $6.50. April contracts decreased by $6.20 over the week. Starting Monday, expanded trading limits will rise to $9.75. The cash trade reported in the South was at $208 this week, diping $1-2 compared to last week. On the other hand, Northern sales saw steady pricing, with a slight drop of $1, reaching $212-213. Additionally, feeder cattle futures fell by $5.97 to the limit of $8.25 on Friday, reflecting a decrease of $7.50 on the week. Monday’s expanded limits for feeder cattle will set at $12.25. The CME Feeder Cattle Index showed a slight increase of 2 cents on April 2, averaging $291.95.

Market pressures stemmed from President Trump’s tariffs, resulting in China implementing a retaliatory tariff of 34% on all US goods overnight. This development contributed to market unease, compounded by the recent downturn in the Stock markets.

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Data from Friday revealed that the Commitment of Traders report indicated an addition of 4,885 contracts to the net long position in live cattle futures and options as of April 1, bringing the total net long position to 142,777 contracts. Conversely, speculators in feeder cattle reduced their record net long positions by 763 contracts, totaling 33,369 contracts as of Tuesday.

The USDA’s National Wholesale Boxed Beef report, released on Friday afternoon, showed mixed results. The Choice and Select beef spread widened to $21.27. Choice boxes gained 8 cents to close at $338.45 per cwt, while Select dropped by 66 cents to reach $317.18. This week’s estimated federally inspected cattle slaughter numbered 591,000 head, a decline of 16,000 head from the previous week and down 23,045 head compared to the same week last year.

Apr 25 Live Cattle closed at $202.625, down $5.425.

Jun 25 Live Cattle closed at $198.200, down $6.500.

Aug 25 Live Cattle closed at $194.700, down $6.475.

Apr 25 Feeder Cattle closed at $279.425, down $5.975.

May 25 Feeder Cattle closed at $274.875, down $8.250.

Aug 25 Feeder Cattle closed at $281.050, down $8.250.

On the date of publication, Austin Schroeder did not hold, directly or indirectly, positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

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