Beef Market Distorted

The urgency of getting beef packing plants back on line is illustrated by graphing packer margins over the past few months. The beef industry will become increasingly distorted if farmers and ranchers are not allowed access to now shuttered packing plants. 

Live cattle futures will get a  lift when plants reopen as  the recent strength in dressed beef values not only reflects reduced supply but also continuing strong beef demand despite reduced incomes . It will take some time to work off surplus finished cattle so live futures might not recover as quickly as cattle market bulls  would like.