GENERAL COMMENTS:
It's been a tough day for the livestock contracts, as the markets don't stand a chance of doing anything but trading lower as headlines and fear of war panic every corner of the market. At this point, the market is left with nothing more to do than to hold its breath until closing and pray that as little positioning as possible is lost. And as if the livestock complex didn't have enough to manage already, USDA announced that another cause of HPAI (highly pathogenic avian influenza) has been detected in a commercial broiler flock of chickens in Stoddard County, Missouri. May corn is up 6 1/2 cents per bushel and May soybean meal is up $4.50. The Dow Jones Industrial Average is down 266.83 points, and the NASDAQ is down 197.36 points.
LIVE CATTLE:
If you haven't spent much time looking at live cattle charts today -- I'd highly advise that you hold onto whatever happiness you possess and skip over that piece of business today ... because it's bad, bad, bad, (insert a long string of cuss words) BAD! The rhetoric is the same as it has been for the past few days, and until something gives with Russia, it's likely going to stay this way. April live cattle are down $1.62 at $136.62, June live cattle are down $1.90 at $133.30, and August live cattle are down $0.80 at $134.80. The cash cattle market hasn't seen any renewed interest, and it's looking like the week's business is done. Throughout the week, Southern live cattle traded for $140 ($2 lower), and Northern dressed cattle sold for $225 mostly ($2 lower).
Boxed beef prices are lower: choice down $0.38 ($253.97) and select down $0.84 ($246.95) with a movement of 76 loads (36.25 loads of choice, 5.62 loads of select, 5.87 loads of trim and 28.66 loads of ground beef).
FEEDER CATTLE:
I hate to repeat words, but the fate of the feeder cattle contracts through Friday's trade has been the same ol' same ol' story -- grains rally and cattle cry. March feeders are down $3.37 at $152.97, April feeders are down $2.75 at $157.77 and May feeders are down $2.47 at $163.02. And with the live cattle contracts plunging lower too, there's about a 100% chance that feeders round out the day lower. Throughout the countryside, calves continue to see strong demand, but anything much over 600 pounds is selling at a discount, as the grain market worries buyers.
LEAN HOGS:
The lean hog contracts have traded in their untouchable rallying armor for a more comfortable set of lounge clothes as the market turns red like the live cattle and feeder cattle contracts. April lean hogs are down $3.27 at $101.92, June lean hogs are down $4.15 at $112.35, and July lean hogs are down $3.80 at $111.62. The market was thankful for Thursday's supportive export report but knows that export demand in the long term isn't going to be something it can count on, as U.S. hog prices are spendy. And like the rest of the contracts have realized, it's even becoming a reality in the lean hog complex that the market's fundamental strength holds no chance at fighting off the bearish brawl of war.
The projected lean hog index for 3/3/2022 is down $0.13 at $99.57, and the actual index for 3/2/2022 is down $0.14 at $99.70. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.18 with a weighted average of $94.66, ranging from $106.50 to $90 on 3,236 head and a five-day rolling average of $91.36. Pork cutouts total 158.14 loads with 136.69 loads of pork cuts and 21.45 loads of trim. Pork cutout values: up $1.54, $107.95.
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