
CattleFax CEO Randy Blach said cattle prices will rise over the next few years, citing a shrinking US cattle inventory due to extreme drought and beef demand at a 33-year high. He also projected US corn averaging $5 to $5.50 in 2022.
A shrinking herd and drought-driven supply tightening support higher cattle prices and suggest firmer corn demand from feedlots.
After 80 past bullish weather events, Live Cattle moved a median +0.1% over 5 sessions (54% higher; middle half -0.8% to +1.3%), and +0.7% over 20.
After 79 past bullish weather events, Feeder Cattle moved a median +0.1% over 5 sessions (53% higher; middle half -1.4% to +1.7%), and +1.4% over 20.
After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.