KLA Letter To USDA Regarding Market Investigation KLA President Harry Moser this week sent a letter on behalf of the association to USDA Under Secretary Greg Ibach requesting the Packers and Stockyards Division of the Agricultural Marketing Service begin an investigation to determine if any violations of the Packers and Stockyards Act occurred following the first diagnosis of coronavirus in the U.S. on January 21. The letter indicated that the conversion from a negative cash to futures basis to a record-wide positive cash to futures basis, as well as the widening of the spread between the negotiated cash cattle price and the boxed beef price, caused a number of Kansas cattle producers to ask questions about the integrity of the cattle markets. Moser noted that while the organization does not make the request with preconceived notions, given the recent market reactions, KLA believes it is prudent for an investigation to proceed to maintain producer confidence in the markets. Additionally, the letter requested that USDA quickly publish the results of its investigation of market events following the Tyson processing plant fire in August 2019.
The complete letter can be viewed here. In addition to the website, members can stay up-to-date on KLA’s coronavirus response through the weekly newsletter, daily KLA Today e-blasts and by downloading the KLA app via the Apple Store or Google Play. Members who would like to receive KLA Today can email [email protected].
