GFMM desk: The fear of the outbreak of coronavirus in China has also had a negative impact on the cattle market. The limits to the daily trade of hogs and cattle in the United States have dropped.
“If we thought China’s corona virus was making the media rounds late last week, it’s a full-fledged media frenzy this morning,” INTL FCStone said in a note to clients. “The public’s concern there is reminiscent of prior SARS and bird flu events, both of which resulted in slowed Chinese travel, restaurant consumption, and a general slowdown in commerce.”
The virus has already killed 106 people in China. The biggest holiday of their year has caught millions of people. Has destabilized the global market. China has extended its Lunar New Year holiday. The Shanghai Stock Exchange said it would reopen on February 7. China’s big business was shut down. And asked staff to work from home to stop the disease from spreading.
April live cattle futures reached their lowest price since Oct. 23. The contract dropped its daily limit of 3 cents, ending at 121.300 cents per pound at the Chicago Mercantile Exchange. CME March feeder cattle futures dropped their limit of 4.5 cents to 135.175 cents per pound and touched their lowest level since Sept. 24.
CME February lean hog futures fell 1.275 cents to 65.95 cents per pound. The most-active April contract ended down its daily trading limit of 3 cents at 70.450 cents, hitting its lowest since Aug. 7. Animal markets will trade with expanded limits.
Traders also said that after the initial trade agreement between Beijing and Washington on January 15, Chinese demand for US meat is at risk in the market because they were waiting to buy in the market step by step.