DTN Early Word Livestock Comments 04/04 06:23

4/4/2025 - 06:54:00

DTN Early Word Livestock Comments      04/04 06:23
   Cattle Trade May Develop at Steady Cash Friday

   Cattle futures made a quick turn on Thursday, influenced by the huge decline
in the equity markets. The fears of a recession ran rampant, and what that
would mean for beef demand. Hog futures declined, but not to the extent of
cattle. Some stability might be seen Friday ahead of the weekend.

Robin Schmahl
DTN Contributing Analyst

   Cattle: Steady        Futures: Mixed        Live Equiv: $246.20 -$0.96*

   Hogs: HIgher         Futures: Mixed       Lean Equiv: $100.63 +$1.11**

   *Based on the formula estimating live cattle equivalent of gross packer
revenue. (The Live Cattle Equiv. The index has been updated to depict recent
changes in live cattle weights and grading percentages.)

   ** based on formula estimating lean hog equivalent of gross packer revenue.

GENERAL COMMENTS:

   Traders were rattled as substantial selling pressure permeated throughout
the equity markets and other commodities. There was positive news as Mexico and
Canada's livestock and beef are not impacted by the tariffs under the USMCA
agreement. Tariffs have been put on beef imported from Australia, which could
be supportive for the U.S. market. There were a few cattle traded on Thursday
at steady money with last week. Packers may not bid higher than steady money to
purchase cattle this week due to market uncertainty. Feedlots may be willing to
sell cattle to avoid the potential for lower cash prices. Weekly export sales
were better than the previous week with 9,300 metric tons (mt) reported. Sales
will be closely monitored in the coming weeks to see if tariffs will impact
international demand. Boxed beef prices were lower with choice down $1.53 and
select down $0.99.