Cattle futures took another step down on Friday, unable to build upon gains established a day earlier. Along with the overall bearish bent tied to larger beef supplies, pressure came from China placing pork on a list of U.S. products that could be subject to increased import duties. That was in response to President Trump’s Executive Memo calling for tariffs on up to $60 billion worth of Chinese imports, in retaliation for intellectual property theft by that nation. The monthly Cattle on Feed report (see below) will likely add more pressure to start the week.
Live Cattle futures closed an average of $1.91 lower through the front three contracts, an average of 87¢ lower through the next three and then an average of 38¢ lower.
Feeder Cattle futures closed an average of $1.74 lower ($1.22 to $1.95 lower).
Choice boxed beef cutout value was $2.12 lower Friday afternoon at $223.09/cwt. Select was $1.62 lower at $216.40.
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Major U.S. financial indices closed sharply lower again on Friday as trade tensions with China escalated.
The Dow Jones Industrial Average closed 424 points lower. The S&P 500 closed 55 points lower. The NASDAQ closed 174 points lower.
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Despite more cattle being placed earlier from late fall through the winter, in response to drought-reduced small grain pastures, more cattle than expected continue to be placed, according to Friday’s monthly Cattle on Feed report.
Feedlots with a capacity of 1,000 head or more placed 1.8 million head on feed in February, which was 7.3% more than the previous year. That’s at least 3% more than most estimates heading into the report. Most of the cattle placed in February (52.7%) weighed 700-899 lbs.; 36.3% went on feed weighing 699 lbs. or less; 11.1% weighed 900 lbs. or more.
Marketings in February of 1.68 million head were 1.6% more than last year, about in line with expectations.
Total cattle on feed Mar. 1 of 11.72 million head was 8.8% more than the previous year, which was about 1% more than most projections ahead of the report.