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“We had expected a $3 to $4 hit to cash cattle this week from the fire,” Allendale said. “The market is apparently ready to go a bit deeper than that. This news is bearish for cattle prices as it means fewer hands bidding. Yes, we certainly will find a home for these market ready numbers but there will be a disruption for a couple weeks.”

The Hightower Report still believes the market is overreacting to the Tyson processing plant fire, despite that there may be 5=6% less beef available to the market. “The market is assuming that other plants will not have the capacity to increase their kill rate and that there will end up being more market ready cattle for the industry to slaughter than capacity,” they said.

Outside markets

Stocks: September E-mini S&Ps this morning were down 1.37% this morning. Early this morning in Europe, the Euro Stoxx 50 was down 1.85%, France’s CAC 40 was down 1.85%, Germany’s DAX Index fell by 2.07% and London’s FTSE 100 was down 1.38%. In Asian markets, trade was mostly higher, as trade tensions eased slightly after U.S. President Trump said it will delay tariffs on certain Chinese products, said. Shanghai’s Composite Index rose 0.42% overnight, while Japan’s Nikkei Stock Index finished up 0.98%.

Currencies: Early today the dollar index was up 0.01%, EUR/USD was up 0.02% and USD/JPY was down 0.70%.

Energy: September WTI crude oil prices this morning are down $1.60 cents (2.80%), and September gasoline is down 2.17%.

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