Triple-digit losses developed in all livestock futures Monday. Feeder cattle and lean hog futures took the brunt of selling pressure as widespread losses last week continue to snowball into further market liquidation. Reports that JBS plans on resuming processing schedules Tuesday at the Grand Island, Nebraska, plant may help to limit additional pressure in cattle trade at opening bell.
GENERAL COMMENTS:
Monday morning news of a fire in JBS’ Grand Island, Nebraska, plant created uncertainty through much of the morning. With reports that the fire did not affect processing and fabrication parts of the plant, and later, confirmation that JBS plans on running slaughter schedules starting Tuesday, the focus moved away from processing issues and back to the technical market freefall that has overwhelmed the market over the last week.
Sharp triple-digit losses developed in cattle and hog futures with feeder cattle and lean hog futures leading the market lower Monday.
Hog prices moved lower on the National Direct Afternoon Hog Report in light trade, falling $1.38 with a weighted average of $84.48 on 5,304 head.
December corn is down 4 1/4 cents per bushel and December soybean meal is up $2.70 per ton. The Dow Jones Industrial Average is up 261 points and NASDAQ is down 9 points.
