DTN Early Word Livestock Comments 02/04 06:21

DTN Early Word Livestock Comments 02/04 06:21 Tariffs Have Been Delayed for a Month The livestock complex was hit hard Monday, caused by the resumption of the imports of feeder cattle from Mexico and the imposing of tariffs on both Canada and Mexico. The uncertainty provided a lot of pressure on that market to close the day with significant losses with feeder cattle hit the hardest. Robin Schmahl DTN Contributing Analyst GENERAL COMMENTS: The extreme bearishness in the feeder cattle futures was due to the resumption of feeder cattle imports from Mexico into the U.S. The other part of the equation was the tariffs that were to be imposed on Canada and Mexico and the uncertainty of what that was going to do to beef exports. However, the tariff situation changed throughout Monday. Both President Trump and Mexico agreed to put tariffs on hold for one month. Later in the day, Canada also is making commitments, putting tariffs on hold as well, pausing them for at least one month. That could significantly change the market Tuesday as the delay of those tariffs might result in some buying interest as traders may get back into the market to take advantage of the lower prices. There is no doubt futures will remain volatile in the near term. The overall fundamentals of the cattle market have not changed. Boxed beef prices were higher with choice up $4.31 and select up $2.77 indicating continued strong consumer demand.