NCBA Requesting Formal Investigation into Possible Market Manipulation

WASHINGTON, DC – If fair and functioning cattle markets are vital to the sustainability of the cattle industry, then the beef supply chain must work together in this time of volatility and instability. According to Marty Smith, President of the National Cattleman’s Beef Association (NCBA) and a cow-calf producer from Florida, the onset of COVID-19 has resulted in the steep decline of both the cattle futures market and cash trade. The result is significant financial challenges for cattlemen. After weeks of striking disparity between boxed beef price increases and declines in both the cattle futures and cash price, Smith says he fears this trend could have devastating long-term impacts on cattle producers. The concerns by cattlemen led to a letter from NCBA to President Trump urging his support in an investigation into the striking disparity between boxed beef prices and cattle prices in the futures and cash markets. Specifically, NCBA is asking for help in identifying whether inappropriate influence occurred in the markets, and to provide the industry with recommendations on how cattle markets might evolve to ensure they are equipped to function within today’s market realities.