In this file:

 

·         Tyson Foods fire creates ripple effect in cattle markets

Prime Cuts with Steve Kay

 

·         Market Disruptions From Tyson Plant Fading Away

… It has been seven weeks since the Holcomb, Kansas, Tyson plant fire and cattle futures markets are mostly back to business as usual. That's according to Oklahoma State University economist Dr. Darren Peel. He says the fire caused a dramatic ripple effect from the loss of fresh beef in the wholesale market…

 

·         Fed Cattle Recap | Cash market continues post-fire recovery

The cash trade for fed cattle was mostly $2-4 higher on slightly higher sales volume.

 

 

Tyson Foods fire creates ripple effect in cattle markets

Prime Cuts with Steve Kay

 

By Steve Kay, Contributor, Canadian Cattlemen

October 8, 2019

 

The North American cattle and beef industry has endured “weather” and BSE-related markets but never a “fire” market such as resulted from the fire at Tyson Foods’ Holcomb, Kansas plant on August 9. The fire took out more than 30,000 head per week of capacity for several months. The loss is most directly having an impact on cattle feeders on the Southern Plains, as Kansas had 110,000 more cattle-on-feed on August 1 than a year earlier and Texas had 40,000 more on feed. That’s against a national inventory that was record large for the date but up only 19,000 head than a year ago.

 

Conversely, Nebraska had 140,000 fewer cattle-on-feed on August 1 than last year. So the fire hit the very region that could least afford to lose any capacity. Had a fire put a large northern plant out of action, I suspect the market impact would have been much less. On the other hand, futures traders are not the most logical bunch and there might still have been a big selloff in live cattle futures.

 

In any event, the futures market grossly overreacted and held its own fire sale of live cattle contracts. The market then appeared to admit its misreading of the fire’s impact and began to recover. But the damage to cash live cattle prices had been done, with five-area average prices the week after the fire falling US$5.69 per cwt. live and US$11.28 per cwt. dressed. Live prices inched higher the following week and dressed prices added US$4.39 per cwt. But they then fell back as packers bought cattle for a Labour Day holiday-shortened production week.

 

USDA’s Packers and Stockyards Division (PSD) is to investigate whether packers acted improperly or unfairly in the aftermath of the fire. The PSD, which mainly oversees livestock market behaviour, will launch an investigation into recent beef pricing margins to determine if there is any evidence of price manipulation, collusion, restrictions of competition or other unfair practices, said Agriculture Secretary Sonny Perdue in late August. If any unfair practices are detected, USDA will take quick enforcement action. USDA remains in close communication with plant management and other stakeholders to understand the fire’s impact to industry, he said.

 

It is not known if the Commodity Futures Trading Commission will be involved in the investigation. This would seem logical...

 

more, including links

https://www.canadiancattlemen.ca/2019/10/08/tyson-foods-fire-creates-ripple-impact-in-cattle-markets/

 

 

Market Disruptions From Tyson Plant Fading Away

 

By RFD-TV News

Oct 08, 2019

 

It has been seven weeks since the Holcomb, Kansas, Tyson plant fire and cattle futures markets are mostly back to business as usual. That's according to Oklahoma State University economist Dr. Darren Peel. He says the fire caused a dramatic ripple effect from the loss of fresh beef in the wholesale market.

 

In response, The choice boxed cutout jumped more than $23 to $239.87 at its peak. But the cash feeder market dropped on long-term uncertainty with fed cattle taking the biggest hit, falling $12.30 to a low of $100.07.

 

While future prices have returned to more normal, more seasonal levels analysts note that the growing spread between packers and producers is still a major concern.

 

document, plus video report [0:43 min.]  

https://www.rfdtv.com/story/41155382/market-disruptions-from-tyson-plant-fading-away#.XZ0siH97mUk

 

 

Fed Cattle Recap | Cash market continues post-fire recovery

The cash trade for fed cattle was mostly $2-4 higher on slightly higher sales volume.

 

Ed Czerwien, BEEF Magazine

Oct 08, 2019

 

The cash market for fed cattle continues its post-fire comeback for the week ending Oct. 5. The question on many minds is whether or not the cash trade will rebound to levels seen prior to the August 9 fire at the Tyson Finney County beef plant.

 

Given seasonal trends, among other factors at play in the fed cattle market, perhaps not. But as we enter the fourth quarter of the year, fed cattle prices are back to where earlier estimates predicted. Whether or not “normal” has returned to the cash trade, however, remains to be seen.

 

Looking at volume, the Five Area formula sales volume totaled 245,954 head, compared with about 254,000 the previous week. The Five Area total cash steer and heifer volume was 76,027 head, compared with about 73,000 head the previous week.

 

Nationally reported forward contract cattle harvest was about 50,000 head for the week. The packers have 213,000 head lined up for October. National cash sales this week included about 13,000 head of 15- to 30-day delivery and only 6,000 head from the previous week. 

 

Now looking at prices, the weekly weighted average cash steer price for the week ending Oct. 5 for the Five Area region was $107.30 per cwt, $2.37 higher than the previous week.   

 

The weighted average cash dressed steer price was $169.79, which was $4.50 higher.

 

The Five Area weighted average formula price was $165.24, $3.10 higher.

 

The estimated weekly total federally inspected cattle harvest...

 

more

https://www.beefmagazine.com/market-reports/fed-cattle-recap-cash-market-continues-post-fire-recovery