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Bloomberg reports US meatpackers are considering major operational changes, including automation and slower line speeds, to prevent COVID-19 infections. The changes are expected to raise costs for an industry that has supplied cheap meat.
Higher processing costs and slower lines may lift chicken and red meat prices over time, with limited near-term effect on feed grain demand.
bloomberg.comIsis Almeida, Jen SkerrittMay 12, 2020Not enough comparable past events yet for a historical read.
After 40 past logistics events, Live Cattle moved a median -0.3% over 5 sessions (45% higher; middle half -1.4% to +1.4%), and -1.9% over 20.
After 16 past logistics events, Lean Hogs moved a median +1.3% over 5 sessions (56% higher; middle half -1.6% to +3.0%), and -6.0% 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.
