Last week’s USDA weekly report showed beef exports up 45% from last year.
Cattle futures have run into a strong headwind on the Chicago Board of Trade (CBOT) as corn traded up 24¢/bu. on Tuesday, while feeder cattle and cattle ready for slaughter have lost close to their daily limits.
Feeder cattle, younger animals taken from their mothers and grazing pastures for their final fattening in lots, were down the allowable $3/cwt. to $130 on Tuesday. Live cattle, those ready for slaughter, fell $2.30/cwt. to $116.10.
The CBOT, in a commentary, noted a 5% increase in cattle on feed reported by USDA, as well as a 17% increase reserves of beef in cold storage, and says, “traders see hefty placements of heavier-weight cattle into feedlots in March as a reason to suspect higher production during June through August time frame and this helped to pressure.”
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