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Live and feeder cattle futures made contract highs the prior week following the USDA cattle inventory report, which showed a shrinking cow herd with heifer retention at 94 percent year over year. Beef cows were at 96 percent, in line with trade estimates.
The column also discusses proposed contract library legislation for cattle pricing transparency.
A shrinking cow herd limits future beef supply and supports cattle prices, while pricing transparency legislation could change how negotiated cattle trade is priced.
tsln.comFeb 3, 2023After 268 past bullish report events, Live Cattle moved a median +0.3% over 5 sessions (58% higher; middle half -0.7% to +1.4%), and +1.7% over 20.
After 227 past bullish report events, Feeder Cattle moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.5%), and +1.1% 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.
