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Plant closures tied to COVID-19 outbreaks in pork, poultry and beef facilities are backing up market-ready livestock on farms. Industry officials said the rendering sector could not handle mass disposal if producers were forced to euthanize herds.
Backed-up livestock and possible euthanasia signal demand disruption for hogs and cattle, pressuring live animal prices and raising rendering and meat-meal supply uncertainty.
agriculture.comMike McGinnisApr 20, 2020After 117 past bearish disease events, Lean Hogs moved a median -0.6% over 5 sessions (36% higher; middle half -2.2% to +1.6%), and +1.2% 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.
Not enough comparable past events yet for a historical read.
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.
