U.S. livestock: Cattle futures plunge daily limits on beef price fears

Reuters — Most Chicago Mercantile Trade stay cattle and feeder cattle futures contracts fell their respective day by day limits on Friday, as efforts by the U.S. to decrease traditionally excessive beef costs appeared to spark a spherical of lengthy liquidation by speculators, analysts stated.

CME benchmark December stay cattle futures have been down their day by day most of seven.250 cents at 233.925 cents per pound. CME November feeder cattle have been down their restrict of 9.250 cents, at 352.200 cents per pound.

Each markets had tumbled final week and once more on Wednesday after U.S. President Donald Trump sought to cut back beef costs.

The Trump administration stated on Thursday that it will quadruple the nation’s low-tariff imports of Argentine beef.

Merchants additionally famous that Mexico’s agriculture minister will journey to Washington subsequent week with the intention of reaching an settlement on the reopening of the border to Mexican cattle amid an outbreak of the flesh-eating screwworm parasite. The U.S. border has been closed to Mexican cattle imports since Could.

“Managed cash has an enormous internet lengthy within the cattle market and has for some time,” stated Austin Schroeder, commodity analyst for Brugler Advertising and marketing & Administration.

“With all of the headlines that we’ve bought during the last week and a half, I might assume there may be just a few common risk-off (commerce) heading into the weekend. All people is wanting out, and the door is barely so massive,” Schroeder stated.

Reside hog futures have been narrowly blended, with the December contract up 1.250 cents at 81.900 cents per pound.

— Reporting by Julie Ingwersen

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