Monday markets
The cattle complex closed lower on the news that the U.S. will begin receiving cattle from Mexico again and fears of a large number coming into feedlots.
“It’s been a very heavy 24-hour news period focused on the Trump administration’s announcements of placing 25% tariffs on Canada and Mexico, with China thrown in the mix for good measure,” Cassie Fish, market analyst, wrote for The Beef. “There have been developments with Mexico, delaying any tariffs for one month. Canada announced retaliatory tariffs on the U.S. to begin Tuesday, which include pork and poultry, with details on beef to be forthcoming.”
Live cattle closed lower, with the February contract down $1.62 to $202.97 and the April contract down $2.15 to $200.15.
Cash trade was light, with 356 head—not enough for a market trend.
On the formula side, 32,000 head averaging 924 lbs. sold for an average of $326.57.
Cash trade for the week ending Feb. 2 was 58,816 head. Live steers averaged $209.60, and dressed steers averaged $329.26.
“Last week’s negotiated fed cattle trade was very light at 59k head and the average price was $209.57, up $0.38, with 8k head purchased with time,” Fish wrote. “This was another all-time high. Packers have cut production this week, and the estimate for this week’s slaughter is 580k to 590k head compared to 600k last week and 617k a year ago. This week’s smaller harvest and possibly some pre-tariff maneuvering resulted in a big pop in boxed beef values this morning that is not expected to be sustained.”
Today’s slaughter is estimated to be 115,000 head, 1,000 head above a week earlier.
Boxed beef prices were lower on 89 loads, with the Choice cutout up $4.31 to $331.99 and the Select cutout up $2.77 to $319.84.
Feeder cattle
Feeder cattle futures took a hard tumble, with the January contract down $5.22 to $270.50 and the April contract down $5.30 to $269.82.
“Upon the announcement from APHIS over the weekend that cattle imports from Mexico are going to resume any day now, it comes as no surprise to see the feeder cattle market distressed over the matter,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments. “The biggest fear the feeder cattle complex has is that Mexican imports could add more supply to the market and negatively affect prices.”
The CME Feeder Cattle Index was up 61 cents to $281.68.
Corn futures were higher, with the March and May contracts up 6 cents to $4.88 and $4.99, respectively.
Missouri: Joplin Regional Stockyards in Carthage sold 12,500 head on Monday. Compared to the last auction, at the mid-session, feeder steers and heifers are selling steady to $5 lower. Benchmark steers averaging 774 lbs. sold for $267-276, averaging $270.34.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 9,500 head on Monday. An accurate comparison could not be made at the mid-session. Benchmark steers averaging 718 lbs. sold for $268-294, averaging $282.48. — Charles Wallace, WLJ contributing editor
