Economists often say that market prices are determined by demand and supply. What they really mean is more correctly stated as “market prices are determined by expectations of demand and supply.” Under more stable and normal circumstances, this distinction is not particularly significant.

Nationwide response to the COVID-19 pandemic continued to shake segments of the entire beef industry near the conclusion of a historic March 2020. Consumers continued to purchase food commodities off grocery shelves, while ag economists, like their counterparts on national economics, all began preparing for the reality of a recession.

Why did April 2020 live cattle futures lose $10.675 per hundredweight (cwt) from Friday, Feb. 21 to Friday, Feb. 28? Why did it recover $3.70 per cwt over the next three trading days?

The current COVID-19 situation has temporarily changed a great deal about our daily lives. For many farm and ranch families, it means the son or daughter that had been going to high school or college is now at home and helping with the chores. Why not take advantage of the technology skills these young people could bring to the operation?

The novel coronavirus pandemic’s impact on the cattle market has been dramatic already. But that’s not the only threat to ranchers’ livelihood, according to Scott Williamson.

The cattle and beef industry, along with the rest of the U.S. and global economy, is in uncharted waters with the coronavirus pandemic. There are many unknowns about the timing, severity and aftermath of the disease.

Beef exports posted more modest growth in January, increasing 2.5% from a year ago in volume (107,374 metric tons [MT]) and 5% in value ($672.7 million). But beef muscle cut exports were the highest ever for the month of January at 81,342 MT, up 4% from a year ago, while muscle cut value increased 5% to $589.2 million.

Editor's note: This article has been updated to include additional information. The novel coronavirus, recently renamed COVID-19, has now been declared a pandemic by the World Health Organization. A pandemic is defined as an epidemic that has spread to multiple countries and continents.

Wholesale beef prices typically increase seasonally from February into March but have showed only scant improvement from the February low three weeks ago.