What damages are expected from hurricane Florence?

Florence, a Category 4 hurricane, is expected to cause damage of over $ 27 billion. For 2017 there were 16 natural cataclysms that caused damages of more than $ 1 billion each. Total damage from these 16 hurricanes in the was $ 306 billion.

The hurricane is expected to hit the area between South Carolina and Virginia, with severe damage caused  to natural gas distribution terminals. This means that in some parts of the US, gas will be much more expensive and in others slightly cheaper. The effect, however, is likely to be moderate: the hurricane is not expected to pass through the Gulf of Mexico or through New York where much of the US's gas is stored.

According to some meteorological models,  after the hurricane rain can be expected for a period of 5 days, reminiscent of the damages caused by Hurricane Harvey. Harvey's rampage caused $ 125 billion in damages to the homes of the citizens of Houston, Texas.

Damage to insurers is estimated at between $ 15 and $ 20 billion.

Prices of pork futures also jumped in the weeks before the hurricane came in: pig prices for October rose 12.5% ​​to CME (Chicago Mercantile Exchange).

The rise in pork prices was not reflected in the price of the stock ofHormel Foods, which packages and distributes products from (mostly) pork and turkey meat.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

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