With the advent of the Omicron variant, we are watching COVID-19 disrupt the supply chain again.
Anne Wasko of the Gateway Livstock Exchange says the markets are looking a bit defensive this week – especially the futures market.
“We can see some of the battle disruptions that come with the absence of COVID. All the tedious blows keep raising her ugly head, if you will, ”she explains. “So when the markets observe what these numbers look like on a daily basis, the markets don’t like to know.”
Wasko emphasizes the unknown – nobody knows “how much, for how long, who, which regions, all these things,” she says.
“We know the battle numbers are sure to be lower this week. We will keep an eye on this data. And you know, if we do that in the next week or two, there will be so many things that we don’t know, but that’s exactly what the markets are watching very, very closely, ”says Wasko.
One of the uncertainties was the December 17th news that an atypical case of bovine spongiform encephalopathy (BSE) was found in Alberta.
Recently, several countries have raised their concerns about the case, with imports of Canadian beef from South Korea, China and the Philippines partially halted.
“We heard about South Korea, then China, then the Philippines. Again, there are other questions and we will keep an eye on this. Obviously, this is in the hands of the federal government in terms of the solution – so that they can hopefully get to the bottom and get these questions answered quickly and get back to regular trading as it was, ”says Wasko.
Check out the full Beef Market Update with Anne Wasko and Shaun Haney of RealAgriculture below: