Live Cattle Prices Decline Amid Trade Tensions and Slaughter Data

Live cattle prices are experiencing losses, attributed to trade tensions with China and declining slaughter rates. Early cash bids indicate weak market sentiment. Investors in the livestock sector may need to adjust their strategies.

Date: 10-04-2025

AI Rating: 5

Market Overview: Live cattle prices are under pressure, trading down between 10 to 25 cents on Wednesday. The lack of deliveries for April live cattle indicates a sluggish market, and the absence of sales from the Central Stockyards Fed Cattle Exchange reinforces this perception, highlighting uncertain demand.

Feeder cattle futures show some rebound, up 27 cents to $2.25, with the CME Feeder Cattle Index also reflecting a slight uptick at $290.53. Despite this, overall trends in the live cattle market suggest potential weaknesses.

Trade Impact: The imposition of 50% tariffs on Chinese goods, escalating to a staggering 104%, may disrupt livestock demand significantly. In response, China has retaliated, enhancing tariffs on US goods to 84%. This environment raises concerns about future consumer spending and demands on the livestock sector, which could adversely affect sales and processing.

Price Adjustments: USDA's National Wholesale Boxed Beef prices are mixed, furthering market volatility. Choice boxed beef rose by $1.56 to $339.66 per cwt, amidst a decrease in select prices. This divergence could influence profit margins in the beef market moving forward. The 1,000 head decline in cattle slaughter compared to the previous week indicates a downward trend in supply, which could limit growth potential.

These factors combined depict a challenging landscape for cattle producers and investors, suggesting careful consideration for those engaged in the ranching and commodity markets moving forward.

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