Not that Monday was a great day for anyone…but both protein company stocks and livestock futures took it on the chin as concerns about a strengthening dollar and a weakening global economy fed fear that meat exports could be the next casualty.

"This is a new chapter for the U.S. industry as never before have U.S. beef, pork and poultry producers been so dependent on global markets," wrote livestock analysts Steve Meyer and Len Steiner in the CME Group's Daily Livestock Report.

"In the short term, the strength of the U.S. dollar is a significant negative factor for the livestock industry," the report went on to say, predicting lower domestic and export sales could lead to further reductions in output and more consolidation along the supply chain.

Futures traders on the Chicago Mercantile Exchange tended to agree. U.S. cattle futures closed down the daily limit on Monday and hog futures were mostly lower as investors fled the markets amid worries a global economic crisis may drive consumers here and abroad away from meat, according to Reuters.

Wall Street wasn't particularly kind protein stocks either on Monday, with Pilgrim's Pride again the biggest loser, shedding 26 percent of its value as it fell 78 cents per share to close at $2.17 per share on the New York Stock Exchange.

The fall reflected growing concern the poultry processor will not be able to secure favorable credit terms from increasingly stressed credit markets when its current credit reprieve ends Oct. 28. 

While the Dow Jones Industrial Average ended the day down 3.58 percent, Smithfield Foods shares closed down 6.22 percent; Hormel Foods closed down 3.98 percent; and Sanderson Farms fell 3.31 percent. Tyson Foods squeaked out a gain of 0.69 percent on the day in trading on the New York Stock Exchange.

A silver lining for meat processors may be falling feedgrain prices and the reduced demand for grain that the slowing global economy may create. Corn prices are down over 40 percent since June 27.

Also, fears an early frost might reduce this year's crops are fading, according to David Maloni, chief commodity analyst for the American Restaurant Association. He told investors Monday that the current favorable two-week weather forecast would extend mild weather beyond the average frost date in most key growing regions.

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