Chicago cattle futures—feeders in particular—dropped sharply on Tuesday. Hogs also slipped back.
Most-traded August live cattle futures settled at 210.650 cents per pound, down 4.900 cents. October live cattle lost 4.350 cents to close at 208.550 cents a pound.
Most-active August feeder cattle contracts lost 6.875 cents to close at 303.350 cents a pound. September feeders settled at 302.900, down 6.675 cents.
The USDA reported choice boxed beef at $386.51 per cwt, up $4.40. Select boxed beef closed at $372.54 per cwt, up $5.07.
Most-active August lean hogs settled at 111.800 cents, down 0.875 cents a pound. July lean hogs lost 0.150 cents to close at 111.650 cents per pound.
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Pork carcass cutout value sat at $119.89 per cwt, up $0.41, in the USDA’s afternoon report.
Analyst Bill Allen noted that conflict between Israel and Iran has pushed crude oil and grain markets higher, while livestock and stock markets have dropped.
“The real liquidation in the cattle markets has not begun yet, but it will be easy to recognize if it does occur,” Allen wrote.
“I have now spoken with several ranchers who told me they are currently or will begin to retain heifers now. Sure, the livestock markets can maybe bounce back, but how many lives do you think the cattle markets have left?”
“It looks like the U.S. is about to get directly involved with Iran and if that does happen, it will add to the pressure the funds are currently feeling,” he added.
—Prices reported in U.S. dollars
