Cattle futures plunged lower Friday with follow-through, tariff-related pressure — limit-down in some contracts.
Live Cattle futures closed an average of $6.00 lower. Feeder Cattle futures closed an average of $7.81 lower.
Negotiated cash fed cattle trade ranged from light on light demand in the Southern Plains to light on moderate demand in the North through Friday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $1-$2 lower in the Southern Plains at $208/cwt. steady to $3 lower in Nebraska at $210 and steady in the western Corn Belt at $213. Dressed delivered prices were steady at $335, the low end of last week’s range.
Choice boxed beef cutout value was 8¢ higher Friday afternoon at $338.45/cwt. Select was 66¢ lower at $317.18.
Last week’s estimated total cattle slaughter of 591,000 head was 18,000 head fewer than the previous week and 23,000 head fewer than the same week last year. Estimated year-to-date total cattle slaughter of 7.9 million head was 448,000 head fewer (-5.4%) than the same period last year. Estimated year-to-date beef production of 6.9 billion pounds was 114.9 million pounds less (-1.6%).
Grain and Soybean futures were mostly lower Friday.
Corn futures were mostly 1¢ lower, except for fractionally higher to 2¢ higher in old-crop contracts. Kansas City Wheat futures closed 8¢ to 11¢ lower. Soybean futures closed 19¢ to 34¢ lower.
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Major U.S. financial indices spiraled lower Friday in response to new U.S. tariffs and retaliatory tariffs by China.
The Dow Jones Industrial Average closed 2,231 points lower. The S&P 500 closed 322 points lower. The NASDAQ was down 962 points.
Through midafternoon WTI were $4.20 to $4.96 lower.
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U.S. beef exports lost some steam in February, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports of 98,198 metric tons (mt) were 5.5% less than a year earlier, while value declined 4% to just over $800 million.
However, February exports increased year-over year to South Korea, Canada, Egypt and the Philippines, and reached the highest value on record to Panama.
“It was encouraging to see beef exports to Korea trend higher despite considerable economic and political headwinds, and Canada’s demand for U.S. beef has been very robust to start the year,” says Dan Halstrom, USMEF president and CEO. “But exports to China lost momentum in February, likely due in part to the slowdown after Chinese New Year and the questions about plant eligibility. Unfortunately, China has still failed to address the issue of beef plant renewals.”
U.S. pork, beef and poultry plants and cold storage facilities were due for a five-year eligibility renewal by China’s General Administration of Customs (GACC) in February and March of this year. Many Pork and poultry plants were renewed on the March 16 expiration date, but GACC still has not renewed the eligibility of any U.S. beef establishments, and the majority of U.S. beef production is now ineligible for China.
“This impasse definitely hit our March beef shipments even harder, and the severe impact will continue until China lives up to its commitments under the Phase One Economic and Trade Agreement,” Halstrom says.
China also announced additional retaliatory duties of 34%, to take effect April 10, in response to new U.S. tariffs. This will create further obstacles for U.S. pork and beef exports to China, according to Halstrom, who notes that new U.S. tariffs have also created uncertainty for buyers of U.S. red meat in other destinations where retaliation could impact market access and prices.
“USMEF is hopeful that instead of retaliating, other trading partners will choose to lower trade barriers for U.S. exports,” he said. “This would certainly ease the concerns of importers and reduce volatility in the global markets.”