Feeder Cattle futures continued higher Tuesday, buoyed in part by the temporary suspension of live cattle imports from Mexico (see below).
Toward the close, Feeder Cattle futures were an average of $1.74 higher. Live Cattle futures were narrowly mixed, from an average of 19¢ lower in four contracts to an average of 21¢ higher.
Negotiated cash fed cattle trade ranged from inactive on very light demand to a standstill in all regions through Tuesday afternoon, according to the Agricultural Marketing Service.
Last week, FOB live prices were $186-$187/cwt. in the Southern Plains, $187-$188 in Nebraska and $186-$188 in the western Corn Belt. Dressed delivered prices were $290 in Nebraska and $290-$300 in the western Corn Belt.
Choice boxed beef cutout value was $1.86 higher Tuesday afternoon at $311.57/cwt. Select was $1.75 higher at $275.49.
Turning to the grain complex, futures were mixed. Toward the close and through Sep ’25 contracts, Corn futures were 3¢ to 5¢ lower. Kansas City Wheat futures were 1¢ to 2¢ higher. Soybean futures were 2¢ lower to 2¢ higher.
******************************
Major U.S. financial indices continued higher Tuesday.
The Dow Jones Industrial Average closed 123 points higher. The S&P 500 closed 34 points higher. The NASDAQ was up 119 points.
Through midafternoon, West Texas Intermediate Crude Oil futures on the CME closed 20¢ to 25¢ lower through the front six contracts.
******************************
Temporary suspension of live cattle imports from Mexico to the U.S. — due to detection on New World Screwworm in the southern Mexico state of Chiapas — comes with plenty of market questions.
“Roughly 5% of feedlot placements this year have been imported feeder cattle from Mexico,” explain Extension livestock economists in the latest Cattle Market Notes Weekly. “The fall months are a seasonally high import period. If the ban on imports of feeder cattle lasts awhile, it would mean a lower supply of feeder cattle going into feedlots. Tight feeder cattle supplies would get tighter which would mean more support for prices.”
Unknowns, according to the economists, include if and where additional cases are identified, duration of the import restriction and whether the ban will continue to affect all imported cattle from Mexico or only those from specific regions.
Economists contributing to the Cattle Market Notes Weekly article are: Josh Maples, Mississippi State University; David Anderson, Texas A&M AgriLife Extension; Charley Martinez, University of Tennessee.
On Tuesday, the Texas Cattle Feeders Association (TCFA) provided its members with current insights following a call with the U.S. Department of Agriculture’s Animal Plant Health Inspection Service (USDA-APHIS) and others.
Among the TCFA summary points:
- “USDA-APHIS’ goal is to reopen some of the cattle crossings in the next three weeks or so … The length of time it takes to reopen the crossings is largely dependent on how quickly Mexico moves.
- “Crossings where cattle are inspected on the Mexican side of the border will reopen first. For now, that means the crossings in New Mexico and Arizona.
- “USDA-APHIS is requiring that the Mexican government establish additional pre-export pens to verify the safety of Mexican cattle …”