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The Kansas City Fed reports that Tenth District agricultural credit conditions weakened in the first quarter of 2020, with farm income falling sharply. Beyond the survey, meatpacking disruptions and slower ethanol production pushed cattle and corn cash prices down more than 20 percent since January.
Reduced ethanol output and packing disruptions weigh on corn and cattle demand, pointing to lower feed-grain and cattle prices and tighter farm finances.
kansascityfed.orgNate Kauffman, Ty KreitmanMay 13, 2020After 1,102 past bearish report events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.8% to +1.3%), and +0.0% over 20.
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.
