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Temporary closures and reduced capacity at US packing plants from COVID-19 are causing heavy stress for feeder cattle producers. Producers are struggling to get bids and face higher freight costs to reach processing plants.
Packing plant slowdowns widen cash-to-futures discounts and raise costs for feeders, pressuring feeder cattle prices and demand for feed.
brownfieldagnews.comMay 19, 2020After 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.
After 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.
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.
