Cattle Close Higher on Wednesday as Beef Falters
Live cattle futures closed out the Wednesday session with contracts up 50 to 70 cents and August down 20. Cash trade saw very light $225 Southern action reported on Tuesday. The Wednesday morning Fed Cattle Exchange online auction from Central Stockyards, showed no sales on the 928 head, with bids of just $220. Feeder cattle futures were up 77 cents to $1.35 on the day. The CME Feeder Cattle Index was up $5.36 to $316.76 on July 8.
Later in the day, President Trump raised the tariffs on Brazilian goods starting on August 1 to 50%. Brazil has been one of the top exporters of beef to the US so far this year.
USDA Wholesale Boxed Beef prices were sharply lower in the Wednesday PM report, with the Chc/Sel spread narrowing to $13.18. Choice boxes fell $6.59 to $386.45, while Select was quoted $5.19 at $373.27/cwt. Estimated cattle slaughter for Wednesday was 117,000 head according to the USDA, with the weekly total at 349,000 head. That was 11,000 head below last week and 7,550 head lower vs. the same week last year.
Aug 25 Live Cattle closed at $219.775, down $0.200,
Oct 25 Live Cattle closed at $217.350, up $0.525,
Dec 25 Live Cattle closed at $217.300, up $0.675,
Aug 25 Feeder Cattle closed at $320.475, up $1.350,
Sep 25 Feeder Cattle closed at $320.025, up $0.850,
Oct 25 Feeder Cattle closed at $318.025, up $0.775,
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.