Tuesday Midday Livestock Market Summary - Traders Cautious as Trade Tariffs Go Into Effect

GENERAL COMMENTS:

The livestock complex is trading mixed as the live cattle contracts are trading higher while both the lean hog and feeder cattle contracts are trading lower. Today's focus seems to be on the new tariffs imposed on Mexico and Canada. May corn is down 4 3/4 cents per bushel and May soybean meal is down $4.60. The Dow Jones Industrial Average is down 587.14 points.

LIVE CATTLE:

The live cattle complex is weathering today's chaos amid 25% tariffs being imposed on Mexico and Canada rather well. Is it because traders believe imported beef/cattle from the two countries will carry enough of a price penalty that packers could need more domestic supply? One can only speculate at this point. However, seeing the live cattle complex trade well following the pressure endured on Friday is relieving. April live cattle are up $1.30 at $193.55, June live cattle are up $0.80 at $188.90 and August live cattle are up $0.42 at $187.60. Still no developments have surfaced in the cash cattle market and trade won't likely get underway until Thursday or Friday. No bids or asking prices have been posted yet.

Boxed beef prices are mixed: choice down $0.01 ($313.92) and select up $0.74 ($303.15) with a movement of 70 loads (47.36 loads of choice, 8.13 loads of select, 5.02 loads of trim and 9.71 loads of ground beef).

FEEDER CATTLE:

Although the live cattle contracts seem somewhat unphased through the chaotic trade details of today, the feeder cattle contracts are now trading lower. March feeders are down $2.15 at $271.87, April feeders are down $1.57 at $270.47 and May feeders are down $1.15 at $269.95. And though buyer demand is strong in the countryside, this week's pressure is coming from technical factors, which seem to be the most relevant factors on traders' minds currently.

LEAN HOGS:

As fully expected, the lean hog complex is trading yet again substantially lower as traders attempt to grasp what retaliatory actions are going to come from Mexico specifically following this morning's 25% tariff that was invoked on Mexico and Canada. And until the trade chatter simmers, it's unlikely that much else will matter to market participants as this is the biggest line item for today, and potentially this week. April lean hogs are down $1.82 at $81.87, June lean hogs are down $2.50 at $92.85 and July lean hogs are down $2.05 at $95.25.

The projected lean hog index for 3/3/2025 is up $0.28 at $90.22, and the actual index for 2/28/2025 is up $0.50 at $89.94. Hog prices are unavailable on the Daily Direct Morning Hog Report because of confidentiality. However, we can see that only 1,688 head have traded this morning, and that the market's five-day rolling average now sits at $90.23. Pork cutouts total 162.78 loads, with 128.24 loads of pork cuts and 34.54 loads of trim. Pork cutout values: down $0.88, $98.91.