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University of Kentucky agricultural economist Kenny Burdine said COVID-19 demand shocks hit cattle close to harvest hardest, with fed cattle prices falling sharply. CME March feeder cattle futures had dropped nearly $25 per hundredweight from early March through March 16.
Kentucky heavy feeders had held up better, supported by good pasture conditions.
Lower fed and feeder cattle values reduce the cost of finishing rations for feeders and signal weaker near-term cattle demand for feed. Pasture conditions limit supply impact in the short run.
lanereport.comKevin O. StinnettMar 17, 2020After 70 past bearish disease events, Live Cattle moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.0%), and +0.4% over 20.
After 46 past bearish disease events, Feeder Cattle moved a median +0.3% over 5 sessions (54% higher; middle half -2.3% to +1.6%), and +1.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Notes March feeder futures fell nearly $25/cwt through March 16 on COVID-19 demand shocks, giving context for the continued selloff on the move date.
Notes March feeder futures down nearly $25/cwt from early March through March 16, corroborating the magnitude, though it extends beyond the window.
