The cattle markets started the week right where they left off last week -lower -and trading limit lower at one point yesterday morning. Nearby Dec live cattle futures synthetically trading as low as $120.02, which perhaps not coincidentally is the exact level Oct futures traded to in early Oct before staging a major rebound. This as the industry continues to fret about weak wholesale beef and cash cattle markets, alongside confirmation from the WTO they are awarding Canada and Mexico $1 billion in retaliatory tariffs. This was less than the $3 billion they’d asked for, but clearly not what this industry needs right now. Do note month of October beef import/export data out in recent days showed monthly exports down 14% vs last year. YTD exports are now down 13% vs 2014 and generally in line with current USDA forecasts. The bigger story perhaps comes in imports where monthly shipments were down 13% vs last year, our first y-o-y reduction in almost two years, with much slower shipments from Australia (approaching quota) and Brazil. 10 loads of deliveries were tendered to Worthing SD last night.
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