U.S. cattle and hog futures dropped as worries about a nuclear disaster in Japan had investors fleeing the markets, Reuters reports.
Before the Japanese earthquake and tsunami which damaged some nuclear reactors, investors had bid cattle and hog futures to record highs.
The McPherson Sentinel also covers this topic:
While it’s still too early to tell the extent of the damage to Japan’s agricultural industry, initial reports include damage to some feed mills and livestock operations.
“It is too early to tell what effect this will have on Japan’s agricultural sector, but it could be of significance,” says U.S. Grains Council Japan Director Tommy Hamamoto.
Already U.S. grains and cattle markets have begun to react to the devastating news with downward trends in prices in both markets.
Because Japan is a large buyer of U.S. corn, wheat and soybeans, those markets will likely be the first to experience fallout from the disaster.
Unlike other natural disasters that have played a big role in the U.S.’s commodities market, Japan’s small role in production agriculture means international supply and grain prices shouldn’t change dramatically.
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