August Live Cattle Drops 13.15 Points to 236.825 as Market Fears Trigger Futures Selloff
Updated
Updated · Barchart · May 23
August Live Cattle Drops 13.15 Points to 236.825 as Market Fears Trigger Futures Selloff
1 articles · Updated · Barchart · May 23
Summary
August live cattle slid from Monday’s 249.975 peak to Friday’s 236.825 low, while August feeder cattle broke below their 200-day moving average before rebounding to 349.85.
Traders tied the selloff to mounting fears over screwworm in Texas, plant shutdowns and labor disruptions, possible White House action to curb beef prices, and demand damage from high retail beef prices.
Cash cattle held up better than futures: Kansas live trades were mostly $259, Nebraska $258 live and $408 dressed, only slightly below recent record levels even as futures tumbled.
USDA’s latest Cattle on Feed report added to supply concerns, showing 11.6 million head on feed on May 1, up 2% from a year earlier, with April placements up 6% and marketings down 10%.
The split between resilient cash prices and collapsing futures has heightened debate over whether futures are signaling a market top or overshooting near-term risks in a still-tight cattle supply outlook.