Cattle futures steadied Tuesday after initial pressure tied to new U.S. tariffs and worries about how trading partners will respond.
“We are reviewing the retaliatory measures announced by Canada and China and are watching for details on the response from Mexico,” says Dan Halstrom, president and CEO of the U.S. Meat Export Federation (USMEF). “These three markets accounted for $8.4 billion in U.S. red meat exports last year, including nearly $4 billion to Mexico. While the United States is the primary supplier of pork and beef to Mexico, U.S. red meat has already been facing heightened competition in this critical market.”
Last year U.S. beef exports equated to more than $415 per fed steer or heifer slaughtered and pork exports equated to more than $66 per head slaughtered. These exports, a large share of which are underutilized cuts and variety meat, help producers maximize the value of every animal produced and allow U.S. consumers to enjoy more of the cuts they prefer.
Toward the close, Live Cattle futures were an average of $1.28 higher. Feeder Cattle futures were an average of 43¢ higher, except for an average of 23¢ lower at either end of the board.
Negotiated cash fed cattle trade was limited on light demand in Kansas through Tuesday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there were some early live FOB trades $195/cwt.
Elsewhere, trade was at a standstill.
Last week, FOB live prices were $197 in the Southern Plains and $198 in the North. Dressed delivered prices were $313.
Choice boxed beef cutout value was 92¢ higher Tuesday afternoon at $314.85/cwt. Select was $1.61 higher at $304.02.
Grain and Soybean futures were lower again Tuesday, but off session lows, in defense against the U.S. tariffs on Mexico, Canada and China.
Toward the close and through Sep ’25 contracts, Corn futures were 3¢ to 4¢ lower. Kansas City Wheat futures were 9¢ to 12¢ lower. Soybean futures were 9¢ to 13¢ lower.
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Major U.S. financial indices slid further Tuesday with the new U.S. tariffs.
The Dow Jones Industrial Average closed 670 points lower. The S&P 500 closed 71 points lower. The NASDAQ was down 65 points.
Through midafternoon, West Texas Intermediate Crude Oil futures on the CME were 48¢ to 60¢ lower through the front six contracts.
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U.S. agricultural producer sentiment edged higher in February, according to the Purdue University/CME Group Ag Economy Barometer. The overall index increased 11 points from the previous month to a reading of 152. Gains were driven primarily by the Current Conditions Index, which rose 28 points to 137, marking a significant rebound from its low of 76 in late summer and early fall 2024. In contrast, the Future Expectations Index increased 3 points to 159.
The recent upswing in sentiment reflects a combination of factors, including a sharp recovery in crop prices, expectations for disaster payments authorized by Congress and continued strength in the U.S. livestock sector, according to Ag Barometer analysts.
“While the current outlook for U.S. agriculture has improved, farmers are closely watching trade policy and the potential for a new farm bill, both of which are key factors shaping their long-term expectations,” says Michael Langemeier, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “These ongoing policy concerns will likely play a critical role in shaping producer sentiment in the months ahead.”