Kansas Beef Plant Fire Could Weigh on Cattle Market Near-Term
A large fire occurred Friday at the Tyson Foods beef plant in Holcomb, Kansas, forcing the evacuation of all workers and closure of the facility for an undetermined period.
The loss of that plant means that, at least temporarily, the industry will likely process around 6,000 fewer cattle per day, which could weigh on the cash market and possibly near-term futures as well. The market could react bearishly to the news since fed cattle supplies will have to be absorbed by fewer plants operating for an as yet undetermined time. However, less beef output could also push up wholesale prices for beef.
The industry has been processing an average of about...
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