By  E. W. Lang

The Plague! The Plague!

It appears there are two winners following this week's general slaughter on the Chicago Mercantile Exchange and New York Stock Exchange. The average consumer and the average milk producer both gained a little ground. 

Barrel Cheese was up two cents, and blocks were up 12 cents per cwt. Butter only lost four cents. Interest rates went to the lowest level since the money changers were driven from the Temple. And gasoline at retail was under $2 per gallon in Iowa, as crude oil ended the week at $32 per barrel, after spending some time in the twenties. 

Class III and IV Futures for the rest of this year lost 30 and 62 cents per cwt. Milk-Feed Indices are under $9 per cwt. USDA Milk Subsidies stop that loss at $9.50, depending on production base and producer participation. Yes,  futures are a minus for the week, but few in agriculture enjoy any minimum prices, subsidized by the taxpayer.

Lower interest rates are of benefit to most consumers, though not to seniors living on savings, along with lower energy prices. Both contribute to lower costs of living from young and old alike. 

Equities on Wall Street lost 7.5% this week after being down 15% for a time. Corn lost 20 cents, beans lost 50 per bushel. Steers were off $12 per cwt. Hogs were down $9 and feeders were off $17 per cwt., assuming I did the math correctly. Less travel and fewer gatherings mean less beef and pork are served on tables away from home. 

This was all largely precipitated by the Corona Virus. As livestock people, we know what viruses can do in our herds. A few cows get dysentery, then a lot of cows get it, then it goes away, regardless of what we do or don't do. Maybe a couple cows die and they're usually old or thin ones.

I'm oversimplifying the current world health situation in calous fashion, but many are doing quite the opposite at this moment in time.

Scaredt Romans are Funny

I'm reminded of the mourners running around, screaming, "The plague! The plague!" in the funeral scene from 'A Funny Thing Happened on the Way to the Forum.' Those hysterical Romans actually had a legitimate reason for irrational fear, given the science and communication of their day. If I remember correctly, however, there was no plague and the deceased wasn't dead. I haven't seen the play since 1978.

Today's society is behaving with similar hysteria, all with similar reason.

As far as the stock market is concerned, we like to think a recession can be stopped by government action. Government action may actually be able to slow the rate at which a living virus can spread more effectively than they can slow the profuse bleeding from grossly overvalued equities following an 11 year bull run.