Daily Livestock Report: Market corrections and livestock futures

The sharp correction in the equity market may wreak havoc with livestock futures trading this week. The main issue in mind is what the correction in equites signifies: If the selloff signifies slower growth going forward, it could be problematic for strong demand assumptions built in current cattle and hog prices. On the other hand, if the selloff simply reflects a correction for an equity market that was getting a bit ahead of itself, then the demand implications are not as severe. Volatility has been quite high in recent months and that does not look like it will change. The CME Group’s Daily Livestock Report for Feb. 6 looks at recent data. Read more…