Tuesday markets
Despite a pause in plans to waive beef import tariffs, cattle futures still closed sharply lower, with triple-digit losses.
“Overnight, news broke that the signing had been delayed,” wrote Cassie Fish, market analyst, in The Beef on news that President Donald Trump delayed plans to waive imported beef tariffs. “This news resulted in a higher CME cattle futures opening, but the rally could not hold and the market finds itself posting triple-digit losses again,” Fish continued. “The market appears to be anticipating that more bearish news is coming—after all, the word delayed was used—between now and the mid-term elections and that beef prices won’t stay outside of the rhetoric.”
Live cattle futures closed lower, with the June contract down $1.70 to $247.70 and the August contract $2.47 lower to $241.07.
Cash trade was light, with 1,308 head sold for $260.
On the formula side, 26,800 head averaging 963 lbs. sold for an average of $403.57.
The national weekly direct beef type price distribution for the week of May 4-11 was the following on a live basis:
• Negotiated purchases: $258.26.
• Formula net purchases: $254.32.
• Forward contract net purchases: $245.67.
• Negotiated grid net purchases: $254.62.
On a dressed basis:
• Negotiated purchases: $402.52.
• Formula net purchases: $398.33.
• Forward contract net purchases: $381.89.
• Negotiated grid net purchases: $392.01.
Today’s slaughter is estimated to be 108,000 head, 1,000 head above the previous week.
Boxed beef prices were slightly lower on 96 loads, with the Choice cutout down 49 cents to $390.73 and the Select cutout 22 cents lower to $391.27.
Feeder cattle
Feeder cattle futures also lost triple digits, with the May contract down $2.50 to $365.90 and the August contract $5.75 lower to $356.55.
The CME Feeder Cattle Index was unchanged at $374.83.
Corn futures were higher, with the May contract up 6 cents to $4.67 and the July contract 4 cents higher to $4.80.
Iowa: Russell Livestock in Russell sold 1,382 head on Monday. Compared to the last auction two weeks ago, steers mostly sold steady to $5 higher. Heifers sold sharply lower. Benchmark steers averaging 786 lbs. sold for $376-385, averaging $383.03.
South Dakota: Sioux Falls Regional in Worthing sold 5,675 head on Monday. Compared to the last auction, feeder steers and heifers sold $2-5 higher, and $15-20 higher on a very attractive long string of steers 1,000- 1,050 lbs. Benchmark steers averaging 725 lbs. sold for $390-439, averaging $411.94.
Texas: Giddings Livestock in Giddings sold 855 head on Monday. Compared to the last auction, feeder steers under 400 lbs. were steady, while over 400 lbs. were fully steady to $4 higher. Feeder heifers were fully steady to $2 higher. Benchmark steers averaging 735 lbs. sold for $380-400, averaging $391.70. — Charles Wallace, WLJ contributing editor
