August 13, 2019 / 7:39 PM / 2 months ago

LIVESTOCK-Cattle futures sink to multiyear lows as Tyson plant fire hangs over market

CHICAGO, Aug 13 (Reuters) - Chicago Mercantile Exchange (CME) cattle futures plunged to multiyear lows on Tuesday, with some contract months for both live cattle and fed cattle ending at their daily trading limits for the second day in a row.

Traders said the market continued to weigh the impact of a fire at a key Kansas beef production facility owned by U.S. meat processor Tyson Foods Inc.

“Panic rules and uncertainty is abound as we await some direction from Tyson about how long plant repairs may take - six weeks or six months,” INTL FCStone said in a note to clients.

The front-month live cattle contract settled at its lowest since October 2016 while the front-month feeder cattle contract dropped to its lowest since March 2017.

Tyson has said the plant, which analysts estimated processed 6,000 head of cattle a day, will be down “indefinitely” after the Friday night fire that put some put some 3,800 workers out of work.

CME August live cattle ended down 4.5 cents at 100.55 cents per pound. October also notched a limit down move, sagging 4.5 cents to 99.25 cents.

CME August feeder cattle ended 6.675 cents lower at 127.725 cents per pound while September was down the daily trading limit of 6.75 cents at 127.20 cents per pound.

Lean hogs also were weaker.

CME October hogs ended the day down 2.500 cents at 64.575 cents per pound.

The thinly traded August lean hogs contract settled down 0.175 cent at 79.000 cents per pound. (Reporting by Mark Weinraub, editing by G Crosse)

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