Major US Meatpacking infrastructure has been struck by COVID-19, threatening a shutdown of up to 80% of meat production and imminent shortages of meat at grocery stores across the country. Closing off of more slaughterhouses would suppress demand for livestock, further depressing futures prices, and intensifying wasteful culling of hogs, poultry, and cattle that has already begun. The shutdowns would also constrain US meat exports that have surged in recent months. In a last ditch effort to stave off what would be one of the worst American food crises in decades, the Trump administration is now getting involved to try and keep the supply chains moving.
Related ETF: Invesco DB Agriculture Fund (DBA)
To read this Market Insight, you’ll need to sign in
If you don’t have a subscription, sign up or start a free trial .
