Kansas State University recently hosted a meeting of more than 100 people, and because of coronavirus, the gathering was held online rather than in person, and focused on what COVID-19 means for livestock producers. So far, it’s meant falling cattle and hog prices linked to shifting demand and changes in the supply chain. Participants focused on how COVID-19 is impacting agriculture. Live cattle futures for April delivery fell 26%, from $127.96 per hundredweight on Jan. 10 to $94.28 on April 9th. Hog futures plummeted 42% from $74.13 per cwt to $42.90. Cattle and hog futures for October delivery have also been down, but not as significantly, indicating there is optimism the agricultural sector will make adjustments between April and October. U.S. meat demand is good but meat demand is shifting, from foodservice to grocery demand. Prior to coronavirus, strong demand from institutional customers such as hotels, restaurants and schools helped drive prices. With schools across the country closed and restaurants reducing operations to curbside or delivery only, demand has lessened for higher-priced meat cuts typically sought by restaurants but increased for meat products typically bought in grocery stores, such as ground beef.
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