Putin Just Cost You $35 Per Head
Markets don’t like uncertainty and Vladimir Putin just gave to world’s markets a heavy dose of uncertainty.
Russian stocks crashed by as much as 45% and the ruble hit a record low against the dollar on Thursday, all of which was triggered by Russia’s invasion of Ukraine.
In the U.S., the Dow Jones Industrial Average opened down 800 points, but had regained some of that loss by mid-day. Blue-chip stocks are now down 11% from the record of 36,799 set on Jan. 4, 2022.
Cattle? The geo-political events couldn’t have come at a worse time. Cattle prices had finally turned higher in 2022 after three years of struggling against unforeseen events – packing plant fire, pandemic, cyber-attack.
Feeder cattle futures suffered the most from the Ukraine invasion. The nearby contracts were down $4.50 to as much as $5.00 by midday. At the close April feeder cattle fell $4.475 at $163.80, a two-month low. For a 775-pound feeder steer that’s a loss of about $35.
Live cattle futures also pushed lower. April live cattle fell $2.45 to $142.30, the lowest closing price since Jan. 27. That's also about a $35 per head loss.
Cash cattle traded at $142 - $143 last week, the highest price since August of 2015. This week has already seen prices $1 to $2 higher in trades prior to the Ukraine invasion. Choice boxed beef prices fell just 12 cents on Thursday morning to $260.76 per cwt. Select boxed beef, however, fell $3.48 to $255.48 per cwt.
April live hogs were down $1.50 per cwt. to $106.47 at midday.
