Tuesday markets
Cattle futures saw some volatility with wild swings throughout the trading day but mainly closed higher.
Live cattle futures were higher, with the April contract up $2.40 to $191.20 and the June contract up $1.97 to $190.07.
“The live cattle complex is weathering today’s chaos amid 25% tariffs being imposed on Mexico and Canada rather well. Is it because traders believe imported beef/cattle from the two countries will carry enough of a price penalty that packers could need more domestic supply? One can only speculate at this point,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade was minimal, with 770 head sold—not enough for a market trend.
On the formula side, 32,400 head averaging 915 lbs. sold for an average of $318.36.
The national weekly direct beef type price distribution for the week of Feb. 24 to March 3 was the following on a live basis:
• Negotiated purchases: $198.20.
• Formula net purchases: $204.98.
• Forward contract net purchases: $192.08.
• Negotiated grid net purchases: $206.50.
On a dressed basis:
• Negotiated purchases: $313.13.
• Formula net purchases: $323.14.
• Forward contract net purchases: $304.86.
• Negotiated grid net purchases: $330.91.
Today’s slaughter is estimated to be 123,000 head, 1,000 head above a week earlier.
Boxed beef prices were higher on 121 loads, with the Choice cutout up 92 cents to $314.85 and the Select cutout up $1.61 to $304.02.
Cassie Fish, market analyst, wrote in The Beef that the U.S. imposed tariffs on Mexico, Canada, and China resulted in agricultural commodity markets reacting sharply, experiencing significant sell-offs and volatility. Live cattle futures saw a trading range of 480 points, feeder cattle 425 points, lean hogs 225 points, corn 14 cents and soybeans 22 cents.
“Ag commodities, including dairy, wheat and cotton to the ones already mentioned, are all in the crosshairs of retaliatory tariffs,” Fish wrote. “There remains a great deal of uncertainty regarding how reality plays out over the next several weeks, which is inspiring risk off action by traders.”
Feeder cattle
Feeder cattle futures regained some losses early in the trading day, closing mixed. The March contract was down 17 cents to $273.85 and the April contract was up 45 cents to $272.50.
The CME Feeder Cattle Index was down 48 cents to $280.58.
Corn futures closed lower, with the March and May contracts down 4 cents to $4.36 and $4.51, respectively.
Nebraska: Tri-State Livestock in McCook sold 2,644 head on Monday. There were not enough comparable sales for an accurate trend. Benchmark steers averaging 743 lbs. sold for $288.50-306, averaging $291.73. — Charles Wallace, WLJ contributing editor
