Friday markets
“It’s been a rough morning for the cattle complex as traders have ripped nearly all their support for the market out of the complex upon hearing Thursday afternoon that President Trump could have established some sort of deal to lower beef prices,” wrote ShayLe Stewart, DTN livestock analyst, in her midday comments.
On Thursday, speaking from the Oval Office, President Donald Trump said the administration had struck a deal to lower beef prices for consumers. The announcement came not long after Trump met with Argentinian President Javier Milei at the White House. Trump didn’t offer any further details on his plan.
The cattle complex immediately reacted to the news.
Live cattle futures closed lower, sinking $3.70 on the October contract to $240.25 and $6.05 lower on the December contract to $241.82.
“This comes at such an un-opportunistic time as the fed cash cattle market is trading anywhere from $5.00 to $9.00 higher, which should have a bolstering effect on the market, but this looming news has clouded that positive fundamental achievement,” Stewart said.
A large sum of cash trade finally took place this afternoon. About 50,000 head sold, with live steers selling from $238-241 and dressed steers selling from $372-374. Total cash slaughter for the week so far is about 75,000 head.
Slaughter for the day is estimated at 92,000 head, compared to 91,000 head a week earlier. With tomorrow’s slaughter projected at 9,000 head, total slaughter for the week is expected at 567,000 head, compared to 547,000 head a week earlier.
Boxed beef prices were higher on 188 loads. The Choice cutout gained 66 cents to close at $366.77, and the Select cutout gained $1.34 to close at $350.27.
Feeder cattle
Feeder cattle futures nosedived lower, hitting limit down on deferred contracts. The October contract lost $7.72 to $371.95, and the November contract lost $9.25 to $371.70.
“It comes as no real surprise that the news from President Trump about a potential fix on beef prices being too high has sent the feeder cattle complex limit lower in all of its contracts except the soon-to-expire October 2025 contract,” Stewart said.
“This news development has been gut-wrenching for the market as the cattle complex was just in the middle of adding another record-breaking high to the complex’s already impressive rally, but this development has completely shaken the complex,” she added.
The CME Feeder Cattle Index gained 63 cents to close at $375.10.
Corn futures were sideways, unchanged at $4.22 on the December contract and up a penny on the March contract to $4.36. — Anna Miller Fortozo, WLJ managing editor
