You're watching...
FBN’s Sandra Smith on live cattle futures posting their biggest drop in seven months due to Mad Cow disease.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Seven month on Tuesday the USDA says there is no risk to humans but the help of some of your stocks might be in question.
Sanderson at this here with today's trading and let's say yet -- that -- -- live cattle futures and about ten minutes they'd -- trading session closes in Chicago.
We did indeed see a bounce back from that panicked selling that we saw yesterday some unwinding of a couple trades also that we saw yesterday happened today.
Hormel Foods -- put up an inner day chart you will see.
We did see some of these stocks that got hit these are major beef producers.
I've -- beef and pork producers in the -- -- Bouncing back along with those cattle futures today but take a look at these chicken -- zone also an unwinding of a trade let me throw another chart here -- -- -- dozens in the coming up.
Pilgrim's Pride Tyson Foods remember these are big international meat producers.
They are affected by -- what was just a scare at this point just one cal in California.
And also some of these other plays that we saw some of the ETFs Barclays ETF on a market vectors agribusiness ETF.
Also the how ETF right through their -- the agribusiness ETF all those trades are unwinding that Melissa -- one thing I wanna focus on here.
-- some of the reaction in the fast food chains that have major beef exposure.
We dig a word today that Japan North Korea and Mexico major importers of US beef.
They are gonna continue as they were as far as accepting US -- but we -- get word from South Korea that they did -- US beef office some other retailer shelves.
So there is some concern happening in the market right now and guess what guys RBC capital markets put out a note -- Jack in the Box Wendy's McDonald's some of these.
Restaurant chains that are so dependent on beef and beef prices.
RBC capital markets says of stocks like mcdonalds and Jack in the Box.
Our abide based on what's happening right now because they said even though it's a scary it's -- live cattle futures down off their highs.
And actually lowers the input cost for some of these major restaurant -- so you will notice that a bunch of them including Texas Roadhouse.
Very dependent on those cattle prices and beef prices actually -- in today's session and RBC capital markets says that there are buyer at these levels up.
Always an opportunity always a trade even on news like that rights -- into some.
