Loading…
CME live cattle futures set a contract high as cash trades in Nebraska and Iowa reached $170 to $172 per cwt, up about $5 on the week and new 2023 highs. Analysts attributed the tight fed cattle supply to herd reductions from drought and high feed costs.
USDA estimated 126,000 cattle slaughtered and feeder cattle also rose.
Drought-driven herd liquidation is shrinking the supply of market-ready cattle, which supports higher fed and feeder cattle prices and raises beef processor costs.
grainews.caTom Polansek, GFM Network NewsMar 30, 2023After 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.
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.
On the move date, CME live cattle hit a contract high as cash trade jumped $5 on tight fed cattle supply, and feeder cattle rose in sympathy, which directly supports the sharp one-day feeder rally.
Live cattle hit a contract high on jumping cash trade and tight fed supplies, which pulled feeder futures higher through derived demand.
