Live cattle futures were busy rallying to new highs, with contracts up $2.05 to $2.37 at the close. Cash activity thus far has been limited so far this week. The Wednesday Fed Cattle Exchange online auction from Central Stockyards showed no sales on the 2,556 head offered and $226 bids. Feeder cattle futures finished out the stronger Wednesday session with contracts $3.25 to $3.77 higher. The CME Feeder Cattle Index was up another $1.03 to $326.83 on July 21.
Japan and the US agreed to a trade deal that was announced late on Tuesday. Tariffs will be set at 15% starting August 1. It also outlines Japan buying $8 billion in US ag goods. For reference, ag and related exports to Japan have historically ranged from $12 to 16 billion annually.
