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Lean hog futures fell by an expanded daily limit on March 30 and cattle futures weakened. Concern grew that slaughterhouses could close because of coronavirus spread.
Possible plant closures would cut slaughter capacity and hog demand, which pushes futures lower while live supplies stay heavy.
je.stKasat Sp. z o.o.Mar 31, 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.
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.
Lean hog futures fell by the expanded daily limit on March 30 amid fears of slaughterhouse closures from coronavirus spread, which would back up hog supplies.
Fears of slaughterhouse closures from coronavirus and weaker cattle futures on March 30 signal packer-demand risk at the start of the window.
