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USDA Secretary Sonny Perdue announced a suspension of all fresh beef imports from Brazil over recurring food safety concerns. FSIS had refused 11 percent of Brazilian fresh beef shipments since March, far above the 1 percent rate for the rest of the world.
The suspension supersedes Brazil's self-suspension of five facilities and stays in place until USDA finds Brazil's corrective action satisfactory.
Removing Brazil's fresh beef from the US market tightens US beef supply and supports domestic cattle prices, while Brazilian beef is redirected to other buyers. The impact on feed demand is indirect but the cattle price effect is clear.
usda.govJun 22, 2017After 78 past bullish trade events, Live Cattle moved a median +0.1% over 5 sessions (51% higher; middle half -1.1% to +1.2%), and +0.5% 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.
