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Extreme price swings hit cattle markets in the last week of February 2020. April live cattle futures fell more than $10 per cwt, and the weekly fed cattle price dropped $4.86 to $114.85.
Options premiums rose sharply as volatility increased.
Concerns about lower beef demand from coronavirus and financial-market stress pushed cattle values down, raising hedging costs for feeders. The article describes a past move that is now largely reflected in prices.
wlj.netMatthew Diersen, risk &, business management specialist, South Dakota State UniversityMar 4, 2020Not enough comparable past events yet for a historical read.
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.
April live cattle fell over $10 in the last week of February and cash dropped $4.86, describing the magnitude of the move.
