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A fire on Aug. 9 at the Tyson Fresh Meats plant in Holcomb, Kansas, disrupted one of the largest U.S. beef processing facilities.
The plant has roughly 6,000 head of daily capacity, about 6% of U.S. slaughter, and the damage was mainly electrical. Cattle were redirected to other plants that were already operating near capacity.
Lost slaughter capacity tightens beef supply and raises packer and cutout values, while fed cattle buyers face fewer outlets and pressure feeder cattle prices. Reallocating cattle to other plants has partly offset the effect.
fb.orgMichael NepveuxOct 1, 2019After 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 20 past bearish logistics events, Feeder Cattle moved a median +1.3% over 5 sessions (60% higher; middle half -0.7% to +2.0%), and +2.1% 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.
