USDA released a report on the boxed beef and fed cattle price spread after the 2019 Tyson Holcomb plant fire and COVID-19 disruptions. The agency says its enforcement work continues to check for Packers and Stockyards Act violations.
A wide packer margin over fed cattle depresses cattle prices, and possible enforcement action could shift packer behavior and cattle bids.
After 144 past bearish report events, Live Cattle moved a median -0.1% over 5 sessions (49% higher; middle half -1.1% to +0.9%), and +0.5% over 20.
After 126 past bearish report events, Feeder Cattle moved a median +0.1% over 5 sessions (52% higher; middle half -1.3% to +2.0%), and +0.6% 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.