US Cattle Prices Slump as Import Concerns and Drought Bite

Cattle prices in the US took a hit last week due to a combination of factors. The market was under pressure from concerns over additional Mexican cattle imports, drought-driven marketings, higher corn prices, and softer boxed beef values.

According to the USDA's Cattle on Feed report, August placements fell around 9% from a year earlier, which is significantly lower than expected. This decline in placements will likely translate into tighter fed cattle supplies several months down the line.

While futures prices were under pressure, cash cattle prices remained relatively stable, with most negotiated sales being steady to about $1 lower. This suggests that physical cattle supplies are still tight enough to give producers some leverage.