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CME live and feeder cattle futures fell sharply for a second straight day as coronavirus fears raised concerns about slowing demand and economic growth. Commodity funds liquidated long cattle positions after the US CDC warned of possible community spread, and Kansas feedlot cattle traded $5 lower at $115 per cwt.
Fund liquidation and fears of weaker restaurant traffic and beef demand push cattle futures and cash prices lower, despite seasonally tight supplies.
thecattlesite.comGlobal Ag MediaFeb 26, 2020After 37 past bearish macro events, Live Cattle moved a median -1.1% over 5 sessions (30% higher; middle half -4.3% to +0.4%), and -0.4% over 20.
After 27 past bearish macro events, Feeder Cattle moved a median -0.9% over 5 sessions (37% higher; middle half -3.7% to +0.4%), and 0.0% 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.
Futures fell sharply for a second day as funds liquidated longs after CDC community-spread warning and cash fell $5.
