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.

In the south cattle traded in extremely light volume in a range between US$/cwt 228 and 234 live. Futures fell when some cattle owners accepted US$/cwt 228 in Texas. In the north trade occurred at US$/cwt 236 to 237 with some of the sales for two-week delivery. Dressed sales of US$/cwt 376-7 continued. These prices were US$/cwt 5 lower in the north and US$ 7 lower in the south.