Friday markets
Following President Donald Trump’s announcement to reduce tariffs on Brazilian beef imports, markets headed lower.
On the evening of Nov. 20, the White House issued an executive order announcing the removal of the additional 40% tariff applied to Brazilian beef imports.
“After considering the information and recommendations these officials have provided to me and the status of negotiations with the Government of Brazil, among other things, I have determined that it is necessary and appropriate to modify the scope of products subject to the additional ad valorem rate of duty imposed under Executive Order 14323,” Trump wrote in his order.
Live cattle futures were sent lower, down 27 cents to $214.45 on the December contract and down 62 cents to $214.77 on the February contract.
Cash trade for the afternoon was about 1,700 head. Live steers sold from $210-215, and dressed steers sold for $338. Total cash trade for the week so far is about 56,000 head.
Slaughter for the day is estimated at 105,000 head, compared to 93,000 head a week earlier. With tomorrow’s slaughter expected at 7,000 head, total slaughter for the week is projected at 585,000 head, compared to 576,000 head a week earlier.
Boxed beef prices were higher on 145 loads. The Choice cutout gained 20 cents to close at $371.48, and the Select cutout gained $2.80 to close at $356.98.
USDA released its latest Cattle on Feed report this afternoon. Total cattle and calves on feed as of Nov. 1 totaled 11.7 million, 2% below last year. Placements were 10% lower, and marketings were 8% lower. Disappearance totaled 54,000 head, 2% below 2024.
Feeder cattle
Feeder cattle futures closed lower. The January contract lost $2.15 to close at $314.22, and the March contract lost $1.50 to close at $307.05.
“The feeder cattle complex remains on edge as everyone in the industry knows that eventually the border is going to reopen, which will ripple a negative effect throughout the futures complex,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
The CME Feeder Cattle Index gained $1.14 to close at $341.16.
Corn futures were lower, down a penny on the December contract to $4.25 and down less than a penny on the March contract to $4.37. — Anna Miller Fortozo, WLJ managing editor
