Chicago live and feeder cattle futures fell by their limits on Monday following news of a Nebraska processing plant closure.
All live cattle contracts fell by 7.250 cents. Most-traded June contracts settled at 201.725 cents a pound while February futures closed at 207.525 cents.
Feeder cattle contracts dropped by their 9.250-cent limit. Most-traded March futures settled at 297.800 cents a pound while January futures closed at 304.975 cents.
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Agriculture and Agri-Food Canada made only a handful of alterations for its November report on principal field crops. The only changes AAFC made were with all wheat and durum exports plus domestic use for all wheat and corn in the estimates released on Nov. 24. The report had been initially scheduled for Nov. 19, but AAFC said they chose to delay it until after the United States Department of Agriculture issued its November supply and demand estimates following the U.S. government shutdown.
Choice boxed beef was valued at $370.49 per cwt in the USDA’s afternoon report, down $0.99. Select beef fell by $1.47 per cwt to $355.51.
On Friday, Tyson Foods announced it would close a major plant in Lexington, Nebraska. It will also cut operations at its Amarillo, Texas plant down to one shift.
Tyson’s beef business suffered adjusted losses of $426 million (C$601.1 million) in the 12 months ended on September 27 and $291 million over the previous year. The meatpacker projected the unit will lose $400 million to $600 million in the 2026 fiscal year.
“The shutdown isn’t expected until January 20, which limits the immediate impact (i.e. the December and February contracts), but longs want out,” wrote analyst Austin Schroeder.
Analyst Christopher B. Swift disagreed.
“I think this sharp reaction has more to do with Friday’s trade than the closure of the plant,” he wrote.
“After the news of the (Brazil tariffs) was chewed up and swallowed, it appeared that shorts were being covered and long positions entered into as traders were able to push prices from limit down to plus on the day.”
Lean hog futures rose on Monday. Most-active February futures settled at 79.175 cents a pound, up 1.475 cents. December contracts closed at 78.200 cents a pound, up 0.400 cents.
Pork carcass cutout value was $93.78 per cwt, up $0.35 the USDA reported.
