Mad Cow Case May Be Bearish for Corn, Dennis Gartman Says
The discovery of a case of mad cow disease in the U.S. may have “a bearish effect” on corn and soybean meal prices if fears about the illness spread, economist Dennis Gartman wrote in his daily newsletter.
The first U.S. case of the illness, or atypical bovine spongiform encephalopathy, in six years was found in a dairy cow in central California, the U.S. Department of Agriculture said yesterday. Corn and soybean meal are primary ingredients in livestock feed.
“When it comes to mad cow disease psychology and fear trump science and fact, harsh though that may seem,” Gartman wrote today. “For now, all we can do is wait to see what happens, fearing that this may not be a one-off event, but expecting and hoping that it shall be.”
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