Live cattle futures are falling $1.40 to $1.70 at midday. Cash trade saw very light $225 Southern action reported on Tuesday. Bids are showing up at $223-227 so far on Thursday in the South. The Thursday morning Fed Cattle Exchange online auction from Central Stockyards, showed no sales on the 928 head, with bids of just $220-221. Feeder cattle futures are trading with midday losses of 60 to 82 cents after failing to hold the gap higher from the open. The CME Feeder Cattle Index was up $5.36 to $316.76 on July 8.

Following discovery of a case of New World Screwworm just 370 miles south of the US/Mexico border, USDA Secretary Rollins announced the suspension of animal imports from Mexico late on Wednesday.

Later on Wednesday, President Trump raised the tariffs on Brazilian goods starting on August 1 to 50%. Brazil has been one of the top exporters of beef to the US so far this year. 

Export Sales data showed 11,566 MT of beef sold in the week of July 3. The top buyer was Japan at 4,000 MT, with South Korea buying 3,800 MT. Export Shipments were 14,051 MT. South Korea and Japan were the top destinations of 4,500 MT.

USDA Wholesale Boxed Beef prices were lower again in the Wednesday AM report, with the Chc/Sel spread narrowing to $12.91. Choice boxes were down $1.78 to $384.67, while Select was quoted $1.51 lower at $371.76/cwt. Estimated cattle slaughter for Wednesday was 117,000 head according to the USDA, with the weekly total at 349,000 head. That was 11,000 head below last week and 7,550 head lower vs. the same week last year.

Aug 25 Live Cattle  are at $218.100, down $1.675,

Oct 25 Live Cattle  are at $215.850, down $1.500,

Dec 25 Live Cattle  are at $215.875, down $1.425,

Aug 25 Feeder Cattle  are at $319.650, down $0.825

Sep 25 Feeder Cattle  are at $319.425, down $0.600

Oct 25 Feeder Cattle  are at $317.150, down $0.875