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Tyson closed its Holcomb, Kansas beef plant indefinitely after a fire, which accounts for about 6% of US processing capacity and roughly 6,000 head slaughtered per day. Tyson said no injuries were reported and it would keep paying weekly wages to full-time employees.
Choice boxed beef prices jumped 10.3%, according to Oklahoma State economist Derrell Peel.
Losing this slaughter capacity leaves fewer packer bids for fed cattle, which pressures live and feeder cattle prices. Higher boxed beef values reflect the tighter supply of beef reaching retail and wholesale channels.
agproud.comAug 21, 2019After 29 past bearish logistics events, Live Cattle moved a median -0.3% over 5 sessions (38% higher; middle half -2.0% to +0.5%), and -3.7% 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.
