April cattle prices trended lower throughout the morning hours and fell to their lowest levels since February 10th. It seemed that some of the early selling pressure was follow-through fund selling from yesterday's downdraft, as well as a general risk-off attitude in outside markets. The US dollar rallied to a new 2.5 week high against the Euro currency, and that could be a factor that limits export demand for US beef. Some cash insiders indicate that weakness in cattle futures and negative packer margins could reflect more than a $2.00 decline in this week's cash trade. There was also some talk that movement in box cuts during yesterday's trade was on the lighter side and might have been the result of an active kill during the previous week. Boxed-beef cut-out values came in at $197.76 at mid-day, down 23 cents from Monday.
Join the Discussion