So much for the promising start to the week in Cattle futures. After limit-up and near limit-up moves on Monday, both Feeder Cattle and Live Cattle crashed on Tuesday, basically giving back everything gained in the previous session’s gains.
There doesn’t seem to be an easy explanation, as is so often the case in recent years. Judging by the little change in open interest on the day, there didn’t seem to be any massive liquidation my non-commercial accounts holding long positions.
Except for unchanged in freshly minted away Oct, Live Cattle futures closed an average of $2.47 lower ($1.87 to $2.62 lower).
Feeder Cattle futures closed an average of $3.81 lower ($2.07 to $4.57 lower).
Choice boxed beef cutout value was $4.66 lower Tuesday afternoon at $233.91/cwt. Week to week, Choice was down $13.08. Select was $2.40 lower at $215.26; week to week it was $4.62 lower.
Major U.S. financial indices closed sharply lower on Tuesday. Pressure included the $2.7 billion fine the EU levied against Google’s parent company over antitrust laws, as well as the Senate having to delay a vote on its health-care plan.
The Dow Jones Industrial Average closed 95 points lower. The S&P 500 closed 19 points lower. The NASDAQ closed 100 points lower.
Cattle producers and others in agriculture moved another step closer to getting rid of the Waters of the United States (WOTUS) rule proposed by the Environmental Protection Agency (EPA) back in 2015. You’ll recall that its definition of WOTUS would have granted EPA jurisdiction over all waters in the U.S. on all public and private lands.
The step came with announcement yesterday that EPA and the Department of Army, and Army Corps of Engineers are proposing a rule to rescind the Clean Water Rule and re-codify the regulatory text that existed prior to 2015 defining, WOTUS.
According to a statement from EPA, when finalized, this action would provide certainty in the interim, pending a second rulemaking in which the agencies will engage in a substantive re-evaluation of the definition of WOTUS.
“We are taking significant action to return power to the states and provide regulatory certainty to our nation’s farmers and businesses,” says EPA Administrator Scott Pruitt. “This is the first step in the two-step process to redefine ‘waters of the U.S.’ and we are committed to moving through this re-evaluation to quickly provide regulatory certainty, in a way that is thoughtful, transparent and collaborative with other agencies and the public.”
“This is another great step in the right direction, and the Administration deserves a great deal of credit for injecting some much-needed common sense into our nation’s environmental policies,” says Craig Uden, president of the National Cattlemen’s Beef Association (NCBA). “It’s important to remember, though, that this rule isn’t dead yet. The rulemaking process continues, and NCBA will submit and solicit additional comments on behalf of America’s cattle producers so that they finally get the sanity and clarity they need on land use policy.”
Likewise, Wesley Spurlock, president of the National Corn Growers Association, says, “The goal of the Clean Water Act is to restore and maintain the integrity of the nation’s waters. The 2015 rule moved us further away from that goal. Repealing it is an important first step toward providing farmers the certainty and clarity we have long desired.”