Morning 4-13

Most of Europe still on Holiday for Easter Monday   thus a relatively Quiet overnight session

CPI data released on Friday missed expectations in fact per Bloomberg Core CPI M/M went negative for first time since early 2010” Not unexpected with the Quick Economic slowdown.

Virus News

 CDC saying all the right things this morning’ Expects Virus to begin decline in days ahead, Virus stabilized across USA(Fox)

 Some optimism and hope that that business can get back to normal sooner rather than later Dr fauci on Sunday said “hopefully next month it can start to reopen”

Not all good news, from China as a number of new coronavirus cases rose the most in six weeks with the majority of cases reported in Heilongjiang province which borders Russia. Other key stock markets in Asia also fell: the Nikkei 225 ended 2.3% lower and the KOSPI lost 1.9%. (Trading economics)

Markets:

OPEC Oil production cut deal appears to not big enough as prices have fluctuated between gains and Losses, no limit higher move no strong rally just blah. This must make OPEC none too happy and will likely start to point finger at USA to cut oil production. On That Note Texas Oil regulators plan a meeting for Tuesday to discuss a production clamp down, and unheard-of event just 6 months ago but Times are clearly different now. Crude and Brent little changed as I type, Markets want a bigger cut!

Livestock:

 Tyson Foods shutting its Slaughter plant in South Dakota this plant supplies ~      5% of U.S. Pork, a definite hiccup in the processing chain. A total of four Cattle and Hog plants are either temporarily shut or are shut as Corona virus sickens the work force or at a minimum causes an increase in Workers calling in sick. An Article below from the Cattle range helps explains things a bit, Bold type is my own and is the key reason why hogs and Cattle are limit down

Packer Price Manipulation or Favorable Market Conditions? The amount of beef being processed has dropped due to COVID-19 problems at numerous packing plants, resulting in a buildup of ready-for-slaughter cattle. Normally, this would result in higher beef prices and lower cattle prices. However, over 50% of U.S. beef consumption has been going through foodservice but foodservice sales are currently down from 45% to 65% and sales will start to increase only when restaurants reopen, and unemployment begins to recede

. And even though recent beef export shipments have been strong, new sales data shows slumping export demand. Combine this with the fact that many households have recently stockpiled a 30+ day supply of beef and other meats in their freezers, this becomes a scenario for lower prices for both beef and cattle. Hopefully, the COVID-19 aspects of the problem are short-term.

But this illustrates that the underlying long-term problem is that current packing capacity is barely enough for the current herd size and provides the packers substantial leverage in procuring cattle. Any processing slowdown, regardless of the reason, results in a backup of cattle and lower prices

Spoos Opened higher Sold off and now traded sideways for most of the overnight session. No economic data today so focus turning towards earning season which begins tomorrow, all about forecasts and guidance markets want to hear what companies think about future growth and profits. Bonds off a bit   gold as well Dollar index little changed Jpy with A small bid Any virus related headlines will be on markets radar as Nothing else happening today to drive flows. Stocks had Best weekly gains since 1974

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