Live cattle futures were busy rallying to new highs, with contracts up $2.05 to $2.37 at the close. Cash activity thus far has been limited so far this week. The Wednesday Fed Cattle Exchange online auction from Central Stockyards showed no sales on the 2,556 head offered and $226 bids. Feeder cattle futures finished out the stronger Wednesday session with contracts $3.25 to $3.77 higher. The CME Feeder Cattle Index was up another $1.03 to $326.83 on July 21.
Japan and the US agreed to a trade deal that was announced late on Tuesday. Tariffs will be set at 15% starting August 1. It also outlines Japan buying $8 billion in US ag goods. For reference, ag and related exports to Japan have historically ranged from $12 to 16 billion annually.
Cattle on Feed data will be released on Friday, with June placements expected to be down 2% from a year ago and marketings seen 3.6% below June 2024. July 1 on feed inventory is estimated to be down 0.8% from last year.
USDA Wholesale Boxed Beef prices were mixed in the Wednesday morning report, narrowing the Chc/Sel spread to $22.13. Choice boxes were quoted $4.98 lower at $367.52, while Select prices on average down $2.55 to $345.39. USDA estimated cattle slaughter for Wednesday at 114,000 head, with the week to date total at 331,000. That was down 12,000 head from last week and 31,341 head lower vs. the same week in 2024.
Aug 25 Live Cattle are at $227.025, up $2.050,
Oct 25 Live Cattle are at $223.500, up $2.375,
Dec 25 Live Cattle are at $223.900, up $2.250,
Aug 25 Feeder Cattle are at $331.525, up $3.250
Sep 25 Feeder Cattle are at $331.900, up $3.325
Oct 25 Feeder Cattle are at $330.650, up $3.775
