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U.S. cattle futures rose on May 25 after a USDA Cattle on Feed report showed placements in feedlots fell about 8% in April. August feeder cattle settled up to 144.925 cents per pound, with a weekly gain of more than 5%, the largest in that contract's history.
Total cattle on feed was up about 5% from a year earlier.
Lower placements suggest feedlots will need to buy cattle to fill pens, which supports feeder cattle prices even though total supplies remain large. Tighter available feeder supply is likely to keep prices firm.
grainews.caMichael Hirtzer, GFM Network NewsMay 25, 2018After 227 past bullish report events, FCATTLE moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.5%), and +1.1% over 20.
After 268 past bullish report events, LCATTLE moved a median +0.3% over 5 sessions (58% higher; middle half -0.7% to +1.4%), and +1.7% 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.
May 25 Cattle on Feed showed April placements down about 8%, tightening feedlot supply and driving a record weekly gain of over 5% in August feeders, the core of the 5-day rally.
