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Cattle futures dip as Texas and New Mexico movement limits ease
CME October live cattle settled down 0.60 cent, while October feeder cattle fell 1.625 cents as traders weighed easing livestock movement restrictions and recent bearish news for the sector.
Chicago Mercantile Exchange live and feeder cattle futures turned lower on Tuesday after restrictions on livestock movement were lifted in some areas of Texas and New Mexico, according to Reuters. Reuters reports the cattle market is continuing to price in a run of bearish developments from recent weeks, including the temporarily waived import tariffs for beef, weak boxed beef prices, and the reopening of the U.S.-Mexico border to feeder cattle imports.
At the close, CME October live cattle settled 0.60 cent lower at 212.075 cents per pound, while CME October feeder cattle futures fell 1.625 cents to 315.40 cents per pound, Reuters said. Reuters also noted that the market has been factoring in trade-related uncertainty around beef imports, including reporting that Brazilian meatpacker JBS owner Joesley Batista met U.S. President Donald Trump on Aug. 20 to discuss additional Brazilian beef supply, and that Trump later said he would temporarily ease beef tariffs.
In the background, the U.S. Agriculture Secretary Brooke Rollins said the USDA is taking steps to support the beef industry, including loans for small meat processors and using conserved land for grazing, Reuters reported. The USDA priced choice boxed beef at $378.02 per hundredweight and select at $360.66 per hundredweight, while wholesale pork carcass values were $97.68 per hundredweight, Reuters added.