🛢 Energy & Commodities risk-off · 0–6 months
A what‑if from the future

What if China's African swine fever wave deepens?

A deeper ASF cull of China's sow herd forces record pork imports and reprices global protein — long hogs/lean-meat and a China-CPI pork spike; the crude-collapse cascade is misattributed (ASF lifts grain/protein, it doesn't crush oil). Rhymes with the 2018-19 ASF epizootic that halved China's herd, doubled pork, and spiked CPI. Transmission: pulls in Brazilian/US/EU pork and soymeal feed demand. Forward: post-2019 herd consolidation into big biosecure farms means culls are contained faster, so the price impulse is real but shallower than the 2019 shock.

30%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 30% · 90% range 12–47% · 37 analogues · measured class pandemic 34% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — pandemic ≈0.8371/yr → 34% in 6 mo34%
Analyst prior · editorial share 100% of the class40%
Pooled · weight 86%30%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)30%
Published30%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 0–6 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. The ongoing 2026 ASF wave accelerates into a deeper cull of China's sow herd, forcing record pork imports and repricing global protein. The trigger decomposes into signed root‑shocks — China growth ▼ · Food inflation ▲ · Pandemic shock ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1WTI crude CLon Hyperliquid 📈 chartCommodity▼ -2.0%
hist -6.72–+0.93% · other way +0.27% (n=12)
2Gold XAUon Hyperliquid 📈 chartCommodity▲ +1.4%
hist +0.22–+1.52% · other way +1.05% (n=12)
3Energy sector XLEon Hyperliquid 📈 chartEquity▼ -1.4%
hist -2.54–+0.12% · other way -3.66% (n=12)
4United Airlines UAL 📈 chartEquity▲ +1.2%
hist +0.24–+0.83% · other way -1.43% (n=12)
5ExxonMobil XOM 📈 chartEquity▼ -1.0%
hist -0.71–-0.33% · other way -2.39% (n=12)
6Chevron CVX 📈 chartEquity▼ -0.9%
hist -1.67–+0.12% · other way -2.06% (n=12)
7Delta DAL 📈 chartEquity▲ +1.0%
hist -0.12–+0.86% · other way -1.5% (n=12)
830y Treasury yield DGS30 📈 chartRate▼ -6bp
hist -9.65–+0.81% · other way +1.5% (n=12)
910y Treasury yield DGS10 📈 chartRate▼ -5bp
hist -11.12–+1.55% · other way +1.6% (n=12)
10Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.4%
hist -8.44–+3.81% · other way +3.54% (n=12)
11Tech sector XLK 📈 chartEquity▲ +0.4%
hist -0.2–+1.04% · other way +0.62% (n=12)
12US dollar (DXY) DXYon Hyperliquid 📈 chartFX▼ -0.4%
hist -0.23–-0.11% · other way +0.04% (n=12)
13USD/JPY USDJPYon Hyperliquid 📈 chartFX▼ -0.4%
hist -0.26–-0.09% · other way -0.07% (n=12)
142y Treasury yield DGS2Rate▼ -4bp
model prior · unmeasured

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small gold hedge.
Also moves (not yet on Hyperliquid): United Airlines +1.2% · ExxonMobil -1.0% · Chevron -0.9% · Delta +1.0% · 30y Treasury yield -6bp · 10y Treasury yield -5bp

Why we may diverge from history

Trust the cascade short on DGS10/DGS30: the +19bp 'rise' comes from 2022 hawkish-Fed yield windows — an ASF protein shock flooding pork imports is a growth-scare bid for duration, regime-biased history.

Historical precedent — what analogous events actually did

Across 37 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Offshore yuan hits a record low 2022-11 H5N1 bird flu record US egg prices 2025-04 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 ASML bookings-miss crash 2024-10 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Tesla Q2 2022 deliveries fall on Shanghai COVID lockdown 2022-07 Alibaba upsizes buyback to record $25 billion 2022-03 Bank of England's first post-pandemic rate hike 2021-12 Kaisa Group offshore default 2021-12 Omicron variant Black Friday selloff 2021-11 Turkish lira record low on rate cuts 2021-11 Evergrande debt crisis - global selloff 2021-09 Didi removed from China app stores after NYSE IPO 2021-07 Bitcoin May 2021 crash 2021-05 Gold closes above $2,000/oz for the first time 2020-08 COVID-19 fourth circuit breaker 2020-03 Saudi-Russia oil price war 2020-03 S&P 500 ends longest bull market with record high before COVID 2020-02 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Apple cuts revenue guidance on China weakness 2019-01 China's first African Swine Fever outbreak confirmed 2018-08 February 2018 hot wage print triggers rate scare 2018-02 China stock-market circuit-breaker fiasco 2016-01 August 24, 2015 ETF flash crash 2015-08 Shanghai A-share bubble peak / crash begins 2015-06 Ebola US-case market scare 2014-10 SARS Hang Seng trough 2003-04 October 27, 1997 mini-crash 1997-10 Asian financial crisis - Thai baht float 1997-07 Tiananmen Square crackdown 1989-06 Hong Kong Stock Exchange four-day closure after Black Monday 1987-10 Silver Thursday 1980-03 Gold peaks at $850 1980-01 1979 Iranian Revolution oil shock 1979-01 Iranian Revolution oil shock 1978-12
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
XLE XLESHORT-1.7% · 5d -2.7%66%29 0.31✓ matches cascade
CL CLSHORT-5.1% · 5d -3.6%66%29 0.30✓ matches cascade
ETH ETHSHORT-6.1% · 5d -6.3%67%24 0.29✓ matches cascade
CVX CVXSHORT-1.1% · 5d -2.3%63%37 0.24✓ matches cascade
ARM ARMSHORT-8.1% · 5d -3.0%67%3 0.21⚠ differs
XHB XHBSHORT-1.5% · 5d -0.6%63%28 0.21⚠ differs
HOOD HOODSHORT-7.8% · 5d -7.1%59%14 0.16⚠ differs
SOL SOLSHORT-8.0% · 5d -12.5%60%17 0.15✓ matches cascade
XLK XLKLONG+0.8% · 5d -0.2% ↺ fades59%29 0.15✓ matches cascade
10y yield DGS10SHORT-8bp · 5d -7bp57%37 0.14✓ matches cascade
KRW KRWLONG+0.4% · 5d +0.2%58%28 0.13✓ matches cascade
KWEB KWEBSHORT-2.6% · 5d -2.6%56%28 0.12✓ matches cascade
Bitcoin BTCSHORT-3.6% · 5d -5.2%58%28 0.12·
30y yield DGS30SHORT-6bp · 5d -5bp55%37 0.09✓ matches cascade

Why this probability

China ASF waves recur and intensify cyclically; deeper sow cull plausible within 6mo given ongoing 2026 wave. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.