DTN Midday Livestock Comments 02/24 12:14

DTN Midday Livestock Comments 02/24 12:14 New Headlines and the Market Panics Livestock contracts drop lower Monday morning. By ShayLe Stewart DTN Livestock Analyst General Comments As market analysts, it's our job to provide our readers the most current and up-to-date information available. Knowing that markets are largely influenced by external factors, watching the cattle market isn't as simple as staying up to date with live cattle and feeder cattle trade. But just as fast as new headlines storm through the marketplace, their relevance can diminish just as fast as it came. It's important to know what happening in the market; Monday morning for example, has been largely influenced by the coronavirus spreading into South Korea and Japan, and Brazil again exporting fresh beef into the United States. Sometimes there is a misunderstanding with headlines. Not every bit of data shared is meant to affect the market. It's important to understand what's happening to economies that the U.S. depends on for healthy trade, and understand what's changed from day to day, but the market shouldn't break in two every time there is an announcement of something new. It's important that we all educate ourselves on the matters at hand, and make sound, unemotional decisions when it comes to trade and finances. March corn is down 6 cents per bushel and May soybean meal is down $2.30. The Dow Jones Industrial Average is down 947.90 points and NASDAQ is down 351.86 points. LIVE CATTLE Live cattle contracts haven't neglected to jump on board and trade lower at the start of the new week. February live cattle are down $2.50 at $117.22, April live cattle are down $3.00 at $115.25 and June live cattle are down $2.95 at $107.32. The weakness that has penetrated the livestock sector comes from the announcement that the coronavirus has spread into both Japan and South Korea -- two large export countries for US beef -- and that Brazil will be exporting fresh beef once again into the U.S. Cash cattle business is quiet as usual on Monday as asking prices have yet to be established and packers are working the country quiet yet. Boxed beef prices are mixed: choice up $1.60 ($206.69) and select down $0.50 ($201.20) with a slim movement of 47 loads (25.59 loads of choice, 5.15 loads of select, 6.17 loads of trim and 9.59 loads of ground beef). FEEDER CATTLE Near-limit losses seems to be only option in the feeder cattle market as the day washes out and support seems to be long gone. March feeders are down $4.25 at $135.95, April feeders are down $4.50 at $137.60 and May feeders are down $4.50 at $138.35. The weakness that is affecting the feeder cattle market is no different from the other contracts - the announcement of the coronavirus spreading into Japan and South Korea has the entire livestock sector nervous. LEAN HOGS Knowing that the day is going to be largely spent trading lower, in the midst of the downward pressure, the lean hog complex is taking the slimmest hit. April lean hogs are down $2.17 at $64.85, June lean hogs are down $1.90 at $79.95 and July lean hogs are down $1.50 at $81.22. It's once again positive for the future's market to have positive cash hog trade which aids as something substantial and reliable for the market to fall back on in morning of emotionally stimulated trading. The projected lean hog index for 2/21/2020 is up $0.04 at $55.91, and the actual index for 2/20/2020 is up $0.09 at $55.87. Hog prices on the National Direct Morning Hog Report at $0.80 higher with a weighted average of $50.55, ranging from $45.00 to $52.50 on 3,366 head sold and five-day rolling average of $49.96. Pork cutouts total 136.45 loads with 125.57 loads of pork cuts and 10.88 loads of trim. Pork cutout values: up $1.13, $66.13. ShayLe Stewart can be reached [email protected] (CZ) Copyright 2020 DTN/The Progressive Farmer. All rights reserved.