Cattle Extending Losses on Monday

Live cattle futures are showing another round of weaker trade on Monday, with losses of $3 to $3.55. There are expanded limits of $9.75 for today. Today is also first notice day for April live cattle. Last week’s cash trade was reported at $208 in the South last week, down $1-2 from last week. Northern sales were steady to down $1 to $212-213.  Feeder cattle futures are down $1.17 to $3.15 at midday. Today’s trade has expanded limits of $12.25.  The CME Feeder Cattle Index was back up 2 cents on April 2, with the average price at $291.95. There are just 1,800 head estimated for this afternoon’s OKC feeder cattle auction, down from the same week last year.

President Trump has responded to the Chinese retaliatory 34% tariff with an additional 50% on Chinese goods if they don’t take back the issued 34%. He gave them a deadline of Tuesday, April 9 to withdraw the tariffs. 

Commitment of Trader data from Friday indicated a total of 4,885 contracts added to the net long in live cattle futures and options as of April 1. That took the net long to 142,777 contracts. Speculators in Feeder cattle were peeling back record net long by 763 contracts to 33,369 contracts as of Tuesday.

USDA’s Monday morning National Wholesale Boxed Beef report was higher, as the Chc/Sel widened to $21.51. Choice boxes were back $2.21 at $340.66/cwt, with Select $1.97 higher to $319.15. Last week’s Federally inspected cattle slaughter was estimated at 591,000 head. That was 16,000 head below the previous week and down 23,045 head from the same week last year.

Apr 25 Live Cattle  are at $199.575, down $3.050,

Jun 25 Live Cattle  are at $194.975, down $3.225,

Aug 25 Live Cattle  are at $191.450, down $3.250,

Apr 25 Feeder Cattle  are at $278.250, down $1.175

May 25 Feeder Cattle  are at $271.725, down $3.150

Aug 25 Feeder Cattle  are at $278.325, down $2.725