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U.S. livestock futures on CME plunged by daily limits on April 1, 2020 as stricter coronavirus emergency measures hit stock markets and raised recession worries. Lean hogs fell to their lowest since August 2018 after the White House extended emergency measures through April.
Traders weighed burdensome meat supplies against weaker demand and supply chain disruptions.
Pandemic-driven recession fears and extended lockdowns cut expected meat demand, pushing livestock futures lower and reducing near-term feed demand from feedlots and hog operations.
bloomberg.comApr 23, 2020
grainews.caGFM Network NewsApr 1, 2020
thecattlesite.comGlobal Ag MediaApr 1, 2020After 37 past bearish macro events, Live Cattle moved a median -1.1% over 5 sessions (30% higher; middle half -4.3% to +0.4%), and -0.4% over 20.
After 123 past bullish macro events, Soybeans moved a median +0.3% over 5 sessions (60% higher; middle half -1.0% to +1.8%), and -0.4% over 20.
After 73 past neutral macro events, Soybean Meal moved a median -0.3% over 5 sessions (44% higher; middle half -1.9% to +2.1%), and -1.6% over 20.
After 17 past bearish macro events, Lean Hogs moved a median -1.0% over 5 sessions (35% higher; middle half -2.5% to +0.8%), and -1.6% 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 hogs went limit down on April 1 as stricter coronavirus measures raised recession worries, hitting stock and livestock markets and depressing demand expectations.
Cattle futures plunged by daily limits on April 1 as stricter coronavirus measures raised recession worries and hit sentiment.
Limit-down moves on April 1 after extended COVID emergency measures raised recession fears and hit demand sentiment, driving lean hogs to multi-year lows within the window.
Limit-down plunge in cattle on April 1 as stricter COVID emergency measures raised recession fears fell within the 5-day window and directly drove the decline.
Limit-down moves on April 1 from stricter COVID emergency measures and recession worries began the multi-day liquidation.
Limit-down livestock futures and recession fears on April 1 weakened expected feed demand and risk sentiment, pressuring meal.
