Ideas for trades around this event? Cattle futures, Beef processors, feed, something further up/down stream? World's Biggest Meat Supplier Hit With Ransomware Attack, Affecting One-Fifth of US Beef Capacity "JBS’s five biggest beef plants in the U.S. -- which altogether handle 22,500 cattle a day -- have halted processing following a weekend attack on the company’s computer networks, according to JBS posts on Facebook, labor unions and employees. Those outages alone have wiped out nearly a fifth of America’s production." "The incident has prompted fears of a global meat shortage." https://townhall.com/tipsheet/leahbarkoukis/2021/06/01/cyberattack-on-jbs-n2590301 https://www.bloomberg.com/news/arti...-cyber-victim-as-hackers-hit-top-supplier-jbs Hog futures up today, but then they have been on a very strong uptrend this year, doubling since the start of the year
The news broke before the livestock market opened today, and it seemed to be an instant limit (or near limit) down move at the open, but bounced up to settle in middle of daily range. Here's Aug live cows. You can see the general malaise the PA has been for a while, and then the weekend news of the plant cyberattack and it's effect on daily range. Quite a poke in the ass there. How to play that action? Dunno', but it should be noted that it had almost touched it's low of the year. I don't have feeder cow or hog charts, so do not know how that action was. But it is worth consideration.
Just took a gander at the cow report, and the daily blurb today is apropos for this thread. ---- "Slaughter at JBS, the world's largest meat supplier, was interrupted over the weekend by a cyberattack that left computer systems disabled. "The company took immediate action, suspending all affected systems, notifying authorities and activating the company's global network of IT professionals and third-party experts to resolve the situation. Resolution of the incident will take time, which may delay certain transactions with customers and suppliers," JBS said. Another announcement regarding resumption of operations is expected later today. The vulnerability of the nation's food systems is critically important to national security. An attack on one company in the supply chain is an attack on all companies because of the interconnectivity of the supply chain. Not only does the beef product move through the pipeline of connectivity but the data accompanying the products flows over computer networks serving the entire industry. This past week's disappointing slaughter number of 629,000 head fell well short of last week even though it exceeded volumes from 2019. Purchasing for last week concluded at $119-121 live and $190-191 dressed across all regions for the fourth week in a row. Packers will be purchasing for a full slaughter week -- next week. Negotiations will begin tomorrow when the markets reopen. The current status of the fed cattle supplies in the nation's feedlots is difficult to assess. Those operations with marketing arrangements with processors are remaining current and in some instances are bringing cattle forward to avoid expensive finishing costs. Some producers in the cash markets are struggling to market all of the cattle properly finished. On balance, the balance is close to a standoff and several weeks of healthy slaughter volumes might allow producers to regain some bargaining leverage. Cattle Futures. Futures prices crashed then somewhat recovered from the cyberattack. As news of the cyberattack took its toll, traders were treated with a double dose from skyrocketing grain prices once again..."
Australia’s largest meat processor shut down by cyber attack By Mike Foley and Sarah McPhee Updated May 31, 2021 A cyber attack has shut down operations at the world’s largest meat processor in Australia, Canada and the United States, sending thousands of Australian abattoir workers home. Multinational company JBS, which is also the largest meat processor in Australia, had its global information systems brought down on the weekend. JBS has a network of 47 facilities with abattoirs and feedlots in NSW, Queensland, Victoria and Tasmania. A cyber attack has hit operations of the world’s largest meat processing company JBS in Australia, the US and Canada. Credit:Alex Ellinghausen. JBS Australia chief executive Brent Eastwood on Monday confirmed the cyber attack to beef industry news site Beef Central. The company cancelled all beef and lamb kills across Australia on Monday as workers were sent home. Analysts told Farmonline an estimated 8500 head of cattle and 6500 sheep were scheduled to be processed at JBS facilities today. More @ https://www.smh.com.au/national/cyb...alia-s-largest-meatworks-20210531-p57wsx.html
First they took my oil. Now they are taking my burgers. Incoming government ban 3,2,1... Big Oil and Big Burger >>> honey badger
It will get worse. Hacking will be the new international and domestic terror. And we have by far not seen the worst of it, such as coordinated attacks. We need to seriously ask ourselves for how many more months or years we will sit out a proper response. At what point will we really nail down and call regimes like China and Russia for what they really are? Safe harbors of terrorism and corrupt behavior. We have to stop letting them off the hook when they tell us each time it's not them but some people in the underground that they reportedly have no control over. First of all, that's a blatant lie, they have control over every single Chinese and Russian. Second, oftentimes they actively work with this group to cause targeted harm and damage.