Live cattle futures rallied $1.50 to $2.15 into the close on Monday. Cash trade settled in last week $218-220 in the South, with northern action at $225-228. Feeder cattle futures were in a rally mode on Monday, with gains of $5.12 to $6.10 in the front months. The CME Feeder Cattle Index was up another $4.89 on May 9, with the average price at $301.03.
Over the weekend, USDA Secretary Rollins announced a suspension of imports of live cattle from Mexico as the New World Screwworm makes its way north, now just 700 miles from the US border. USDA’s statement read, “This import suspension will persist on a month-by-month basis, until a significant window of containment is achieved.”
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The meeting between US and China trade reps saw progress, as an announcement overnight showed a drop in tariffs by 115% for each country for 90 days. The US dropped their rate to 30% on Chinese goods, while China cut theirs to 10%. This follows several recent cancellations of beef sales by Chinese buyers.
USDA’s National Wholesale Boxed Beef prices were higher on Monday afternoon, with the Chc/Sel spread at $12.91. Choice boxes were down $2.17 at $348.14, while Select was quoted $4.06 higher at $335.23 per hundred pounds. USDA’s Federally inspected cattle slaughter for Monday estimated at 99,000 head. That is down 10,000 head from the Monday prior, and down 15,524 head from the same Monday last year.
Jun 25 Live Cattle closed at $216.825, up $2.150,
Aug 25 Live Cattle closed at $211.600, up $2.025,
Oct 25 Live Cattle closed at $208.450, up $1.500,
May 25 Feeder Cattle closed at $303.100, up $5.125,
Aug 25 Feeder Cattle closed at $306.375, up $6.075,
Sep 25 Feeder Cattle closed at $305.100, up $6.075,
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