Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
Trump quadrupling Argentina beef tariff rate quota to 80,000 metric tons.
Cattlemen’s Associations don’t want to import Argentine beef and are using foot-and-mouth disease as a reason. It is doubtful that foot-and-mouth disease would enter the US from Argentina. Argentina has not had an outbreak since 2006.
China imports about half of the beef Argentina exports and China has very strict monitoring and inspections of all agricultural products entering China.
Argentina has the highest global beef consumption per capita. Argentina doesn’t have enough inventory of cattle to increase exports. The Argentine peso is collapsing. Taking more beef from Argentina will raise internal prices and further damage their economy.
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