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A fire broke out in the box shop of a Tyson Foods beef plant in Holcomb, Kansas, on Friday night, with no injuries reported. The company is shifting processing to other Kansas plants during rebuilding, and cattle markets fell Monday and Tuesday on processing capacity concerns.
The Kansas Livestock Association estimated the plant processes about 6,000 head per day.
Rerouting cattle to other plants strains regional packing capacity and raises logistics costs for fed cattle. Lower processing capacity adds downside pressure on live cattle prices.
agri-pulse.comChloé FowlerAug 14, 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.
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.
Markets fell Monday and Tuesday on processing capacity concerns as Tyson shifted processing to other plants, so lost demand for fed cattle drove prices lower.
It confirms the Friday night fire, the shift of processing to other plants, and the Monday market decline on capacity concerns, though it was published after the move.
