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Capital Press reports cattle producers and lawmakers are pressing the administration to expand its investigation into the gap between rising retail beef prices and falling cattle prices during the coronavirus outbreak. Oklahoma State economist Derrell Peel says the spread reflects extra processing and shipping costs and that the four largest packers, which control over 80% of slaughter, have historically been found not to unduly influence cattle prices.
Calls for packer restructuring and investigation add uncertainty to fed cattle bids, while the wide cattle-to-beef spread signals continued pressure on cattle prices.
capitalpress.comCAROL RYAN DUMASCapital PressMay 4, 2020After 30 past bearish policy events, Live Cattle moved a median -0.8% over 5 sessions (43% higher; middle half -2.0% to +1.1%), and +0.9% over 20.
After 24 past bearish policy events, Feeder Cattle moved a median +0.3% over 5 sessions (54% higher; middle half -3.3% to +1.2%), and +0.5% 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.
