Demand for Beef Lower
With the already slow exports in beef and increased imports of beef to the US, demand for beef will also drop. Packers are now up to around 95% pre-COVID 19 slaughter levels. Heavier cattle, backed up cattle and the high unemployment rate in the US and the world is bearish to beef and pork, cattle and hogs. US beef is competing with cheaper low grade beef coming to the US from Australia, Mexico and Brazil and it is competing with Brazil for export market share.
China has started to go into a lock down in one of the largest cities and other are expected to follow. Pork producers need to be prepared that pork exports to China probably peaked after record exports the first 4 months of 2020 and pork exports to China and other Asian countries could significantly drop.
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