Live cattle futures are in rally mode so far at Monday’s midday with gains of $1.65 to $1.95.  Cash trade settled in last week $218-220 in the South, with northern action at $225-228. Feeder cattle futures are also rallying, with contracts up $3.82 to $4.75.  CME Feeder Cattle Index was up another $0.36 on May 8, with the average price at $296.14. 

Over the weekend, USDA Secretary Rollins announced a suspension of imports of live cattle from Mexico as the New World Screwworm makes its way north, now just 700 miles from the US border. USDA’s statement read, “This import suspension will persist on a month-by-month basis, until a significant window of containment is achieved.” 

The meeting between US and China trade reps saw progress, as an announcement overnight showed a drop in tariffs by 115% for each country for 90 days. The US dropped their rate to 30% on Chinese goods, while China cut theirs to 10%. This follows several recent cancellations of beef sales by Chinese buyers.

Commitment of Traders data showed a total of 4,498 contracts added to the managed money net long position in the week ending on May 6, taking it to a total of 133,388 contracts. In feeder cattle, specs added back 1,541 contracts to their net long at 29,442 contracts.

USDA’s National Wholesale Boxed Beef prices were higher on Monday morning, with the Chc/Sel spread at $14.15. Choice boxes were down $1.95 at $347.92, while Select was quoted $2.60 higher at $333.77 per hundred pounds. USDA’s Federally inspected cattle slaughter for last week estimated at 559,000 head. That is even with the week prior, but down 56,769 head from the same week last year.

Jun 25 Live Cattle  are at $216.600, up $1.925,

Aug 25 Live Cattle  are at $211.500, up $1.925,

Oct 25 Live Cattle  are at $208.625, up $1.675,

May 25 Feeder Cattle  are at $301.800, up $3.825

Aug 25 Feeder Cattle  are at $305.050, up $4.750

Sep 25 Feeder Cattle  are at $303.725, up $4.700