# The divergence in beef marketing margins | Western Livestock Journal

> Purdue economist Jayson Lusk reports beef processing running 35-40% below last year's capacity due to COVID-19 shutdowns. Wholesale beef prices are up 67% since January while live cattle prices are down 24%.

- Date: 2020-05-15 · published 2020-05-15T12:00:00.000Z
- Category: disease · region US · magnitude medium
- Page: https://feedsoft.ai/events/53256-the-divergence-in-beef-marketing-margins-western-livestock-journal
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Plant closures cut packer demand for fed cattle, pushing live cattle prices down, while reduced meat supply bids up boxed beef. Feeder buyers face a wide cattle-to-beef price spread.

## Read by commodity

- FCATTLE: bearish ▼
- LCATTLE: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| LCATTLE | 2020-05-19 | 5 | +6.0% | 2.8 | Packing capacity running 35-40% below last year while wholesale beef rose and live cattle fell shows a wide margin that gave futures room to rebound as plants reopened. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| LCATTLE | 2024-05-03 | [Bovine flu still adding pressure in the marketplace \| Western Livestock Journal](https://feedsoft.ai/events/5413-bovine-flu-still-adding-pressure-in-the-marketplace-western-livestock-journal.md) | +0.2% | +3.2% |
| LCATTLE | 2020-03-02 | [Markets fall apart on virus fear \| Western Livestock Journal](https://feedsoft.ai/events/5308-markets-fall-apart-on-virus-fear-western-livestock-journal.md) | -5.1% | -9.3% |
| LCATTLE | 2024-04-05 | [Pete's Comments: April Fools’ Day \| Western Livestock Journal](https://feedsoft.ai/events/6737-pete-s-comments-april-fools-day-western-livestock-journal.md) | -1.0% | -2.4% |
| LCATTLE | 2024-04-05 | [HPAI uncertainty leads to major futures selloff \| Western Livestock Journal](https://feedsoft.ai/events/6735-hpai-uncertainty-leads-to-major-futures-selloff-western-livestock-journal.md) | -1.0% | -2.4% |
| LCATTLE | 2020-04-07 | [Downturn hits livestock markets \| News \| wyomingnews.com](https://feedsoft.ai/events/7268-downturn-hits-livestock-markets-news-wyomingnews-com.md) | +2.8% | -4.3% |
| FCATTLE | 2020-03-02 | [Markets fall apart on virus fear \| Western Livestock Journal](https://feedsoft.ai/events/5308-markets-fall-apart-on-virus-fear-western-livestock-journal.md) | -0.4% | -8.1% |
| FCATTLE | 2024-04-05 | [HPAI uncertainty leads to major futures selloff \| Western Livestock Journal](https://feedsoft.ai/events/6735-hpai-uncertainty-leads-to-major-futures-selloff-western-livestock-journal.md) | -1.5% | +0.4% |
| FCATTLE | 2020-04-07 | [Downturn hits livestock markets \| News \| wyomingnews.com](https://feedsoft.ai/events/7268-downturn-hits-livestock-markets-news-wyomingnews-com.md) | +5.4% | +8.3% |

## Sources

- wlj.net: https://www.wlj.net/the-divergence-in-beef-marketing-margins/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.