Market Summary

Slaughter cows and bulls up $5 or so. Trading a little choppy but on their way lower. All classes of calves higher, responding to meaningful improvements in the cattle futures complex all week. That was until Thursday evening, when President Trump announced that the federal government had a plan to reduce beef prices in the US and this plan would be unveiled over the next week or so. Futures traded limit down on Friday in response and the calves were a little lower too. So what could this mean? Industry participants are really unsure of what the government could or would do to manipulate the market lower. A couple things that come to mind are a relaxation in the Mexican feeder cattle import situation due to New World Screwworm and perhaps a reduction or elimination in the tariffs on Brazilian beef imports. USDA did approve a treatment/prevention protocol for NWS using injectable Dectomax a couple weeks ago so perhaps some imports will be allowed with that protocol. Bottom line is no one knows and the market hates uncertainty. I can’t remember a time ever in my business life where governments meddled as much in the private sector as they are today. Fundaments haven’t changed and are unbelievably strong so I think we’ll be ok but we will all be searching for some clarity in the market this week. Ian