Fed cattle down US$/cwt 5-7

War makes the markets nervous. It brings uncertainty into the mix that often leads to surprises and unintended consequences. Iran is not a trade partner for the U.S. for beef or other products, but they do control the Strait of Hormuz and lots of oil flows through that area (20%). Transportation of beef is a large component of cost and higher energy cost takes a toll on already high beef prices. In overnight trading Sunday night, the markets were modestly quiet signaling some softening of tensions, The AG Center.