U.S. livestock: Cattle, hogs fall on demand uncertainty
By Mark Weinraub, GFM Network News
via Canadian Cattlemen - March 18, 2020
Chicago | Reuters — U.S. livestock futures fell on Wednesday, pressured by sharp declines in the equities markets and uncertainty about demand due to the COVID-19 coronavirus pandemic.
The cattle and hog markets surged on Tuesday because of strength in the cash market after consumers cleared out grocery store shelves in anticipation of being homebound for an indeterminate amount of time.
But questions about long-term demand weighed on prices and worries about the financial health of the restaurant industry returned on Wednesday as stocks plunged after rallying on Tuesday.
“It is a nervous trade centred around the coronavirus,” said Don Roose at U.S. Commodities in West Des Moines, Iowa. “Short-term demand is strong to very strong. Does that mean the demand sinks or stays strong? It is a very nervous, volatile market.”
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