Friday markets
President Donald Trump’s announcement about increasing beef imports overshadowed today’s Cattle on Feed report.
“Talk about a wild day. Talk about a disappointing week. To kick Friday morning off, President Trump announced over the next 90 days the U.S. will allow up to 300,000 metric tons of product for ground beef to be imported with no quota tariff,” wrote ShayLe Stewart, DTN livestock analyst, in her closing comments.
“He also stated the administration has a commitment that this beef will be sold at 25% below current prices,” Stewart continued. “This news weakened the futures complex right off the bat, but luckily ahead of the day’s end the market was able to recover mostly.
“Even so, yet another level of complexity has entered the marketplace, the cattle complex is highly volatile and subject to change at any second,” she added.
Live cattle futures headed lower, down 30 cents on the August contract to $223.05 and down 7 cents on the October contract to $217.92.
Cash trade for the day totaled about 20,000 head. Live steers sold from $222-226, and dressed sold from $350-355. Total cash trade for the week through the afternoon was about 70,000 head.
Slaughter through the day is estimated at 99,000 head, compared to 100,000 head a week earlier. With tomorrow’s slaughter expected at 15,000 head, total slaughter for the week is projected at 523,000 head, compared to 517,000 head a week earlier.
Boxed beef prices were lower on 91 loads. The Choice cutout lost $4.24 to close at $385.69, and the Select cutout lost $2.42 to close at $361.32.
USDA released its monthly Cattle on Feed report this afternoon. Total cattle and calves on feed as of Aug. 1 totaled 11.1 million, 2% above last August’s numbers. Placements were 11% lower at 1.42 million head, the lowest for July since the report began in 1996. Marketings were 7% lower at 1.62 million head. Other disappearance totaled 55,000 head, 8% above last year.
“From the outside looking in, Friday’s Aug. 1 USDA Cattle on Feed report should be viewed as neutral to somewhat bullish,” Stewart said. “But given the current developments in the marketplace, it’s likely the report will be glanced at and quickly forgotten.”
Feeder cattle
Feeder cattle futures were mixed, down 55 cents on the August contract to $334.75 and up 10 cents on the September contract to $329.02.
The CME Feeder Cattle Index lost 51 cents to close at $341.85.
Corn futures were higher, up 5 cents apiece on the September and December contracts to close at $4.83 and $5.08, respectively. — Anna Miller Fortozo, WLJ managing editor
