GENERAL COMMENTS:
Throughout Tuesday's trade, the market's buzz and internal chaos was focused on the tariffs placed against China, Mexico and Canada and how these countries could potentially choose to react in a retaliatory manner. No cash cattle trade developed throughout the day, but Southern asking prices are noted at $198 plus. May corn is down 4 3/4 cents per bushel and May soybean meal is down $4.50. The Dow Jones Industrial Average is down 670.25 points.
LIVE CATTLE:
While the rest of the commodity sector panicked and traded mostly lower, the live cattle complex seemed to catch somewhat of a break as its contracts weren't gravely affected by the tariffs effective today. But after having traded mostly lower since the market's high score late in January, traders likely believe the market has endured enough of a correction and didn't need to panic and trade lower yet again today. And there is a plausible case to be made in wondering how packers will manage the added expense of these tariffs on Mexica and Canadia beef/cattle. Depending on how trade dynamics go moving forward, if the tariffs continue to grow greater (currently at 25% right now), then there's an argument to be made that at some point, simply buying more domestic product could be easier than paying the purchase price, handing freight and added tariff expenses. But as always, time will tell. No cash cattle trade developed throughout the day, but asking prices are noted in the South at $198 plus. April live cattle closed $2.40 higher at $194.65, June live cattle closed $1.97 higher at $190.07 and August live cattle closed $1.30 higher at $188.47.
Tuesday's slaughter is estimated at 123,000 head -- 1,000 head more than a week ago and steady with a year ago.
Boxed beef prices are higher: choice up $0.92 ($314.85) and select up $1.61 ($304.02) with a movement of 121 loads (83.18 loads of choice, 17.32 loads of select, 5.78 loads of trim and 14.29 loads of ground beef).
WEDNESDAY'S CATTLE CALL: Steady to somewhat lower. Given that packers haven't increased chain speeds yet, it's likely that prices this week will be steady to somewhat lower again.
FEEDER CATTLE:
The feeder cattle complex was trading fully lower at Tuesday's noon hour, but upon seeing the zen nature of the live cattle complex, it too was able to regain focus and close mostly higher by Tuesday's end. March feeders closed $0.17 lower at $273.85, April feeders closed $0.45 higher at $272.50 and May feeders closed $0.80 higher at $271.00. More than anything, the feeder cattle complex was able to look to the live cattle complex for strength and thankfully in today's market, the live cattle complex was able to offer that stability. At Joplin Regional Stockyards in Carthage, Missouri, compared to last week, feeder steers under 500 pounds sold $5.00 to $15.00 lower, but steers over 500 pounds traded steady to $8.00 higher. Feeder heifers under 500 pounds sold steady to $11.00 lower, and heifers over 500 pounds traded steady to $12.00 higher. Feeder cattle supply over 600 pounds was 64%. The CME feeder cattle index 3/3/2025: up $1.83, $278.75.
LEAN HOGS:
It was another grim day, however, for the lean hog complex as the market closed anywhere from $1.00 to $2.00 lower. The hog complex is especially worried about its availability to market pork products into Mexico and China if retaliatory actions are taken on their behalf. And until these trade dynamics settle, the hog sector will likely remain volatile regardless of what domestic demand does or doesn't do. April lean hogs closed $1.35 lower at $82.35, June lean hogs closed $2.20 lower at $93.15 and July lean hogs closed $1.77 lower at $95.52. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.80 with a weighted average price of $89.21 on 4,748 head. Pork cutouts total 316.59 loads, with 265.67 loads of pork cuts and 50.92 loads of trim. Pork cutout values: down $2.02, $97.77. Tuesday's slaughter is estimated at 487,000 head -- 2,000 head less than a week ago and 36,000 head more than a year ago. The CME lean hog index 2/28/2025: up $0.50, $89.94.
WEDNESDAY'S HOG CALL: Steady to somewhat higher. Even though prices were slightly higher today, Wednesday's market could likely see similar interest.
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