Monday markets
Cattle futures closed mixed after dropping on the news that tariffs on imported beef would be lowered.
“Later in the morning, the Trump administration’s announcement that they will temporarily reduce tariffs on beef imports from Brazil following the meeting late last week between Trump and the president of Brazil, and futures collapsed,” wrote Cassie Fish, market analyst, in The Beef. “June LC has posted a 667-point trading range today, while all CME cattle futures contracts made a new monthly low for May.”
Live cattle futures were mixed, with the June contract up 50 cents to $249.40 and the August contract down 55 cents to $243.55.
USDA did not report cash trade as of WLJ press time.
Cash trade for the week ending May 10 was 107,454 head. Live steers averaged $258.35, and dressed steers averaged 402.05.
Today’s slaughter is estimated to be 102,000 head, 4,000 head above a week earlier. Last week’s estimated slaughter is 527,000 head. Total beef production for the week ending
May 9 was 473.8 million lbs., down 1.4% from the prior week.
Boxed beef prices were higher on 102 loads, with the Choice cutout up $2.83 to $391.22 and the Select cutout $6.48 higher to $391.49.
“There is tremendous divergence between cash market fundamentals and futures action, some saying the market is ignoring goods and proclaiming the May 1 high as the top,” Fish wrote. “Or is that analysis too old school in the age of advanced computer-generated orders? After all, headline trading makes money—even if it doesn’t make sense.”
Feeder cattle
Feeder cattle futures also closed mixed, with the May contract up $1.02 to $368.40 and the August contract down $1.92 to $362.30.
The CME Feeder Cattle Index was up $2.54 to $374.83.
Corn futures closed higher, with the May and July contracts up 4 cents to $4.60 and $4.75, respectively.
Missouri: Joplin Regional Stockyards in Carthage sold 11,000 head on Monday. Compared to the last auction, at the mid-session, feeder steers and heifers are selling from $2 higher to $10 lower. Benchmark steers averaging 701 lbs. sold for $400-405 and averaged $402.73.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 5,000 head on Monday. Compared to the last auction, at mid-session, feeder cattle and calves were not well tested in the early rounds, but a somewhat lower undertone was noted. Benchmark steers averaging 786 lbs. sold for $360-384 and averaged $367.57. — Charles Wallace, WLJ contributing editor
