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Feeder steers and heifers traded mostly $5-$10 lower through the week after futures weakened sharply on Thursday. The USDA Cattle on Feed report showed April 1 inventory up 0.5% year over year at 10.85 million head, with placements lighter than expected and marketings higher.
Cold storage beef stocks were down from last year and slightly below the five-year average.
Lighter placements and higher marketings tighten the feeder supply outlook, but weak fed cattle futures and poor feedlot profit prospects keep feeder demand subdued. The mixed report leaves the bearish price trend largely intact.
lancasterfarming.comApr 29, 2016After 126 past bearish report events, Feeder Cattle moved a median +0.1% over 5 sessions (52% higher; middle half -1.3% to +2.0%), and +0.6% over 20.
After 144 past bearish report events, Live Cattle moved a median -0.1% over 5 sessions (49% higher; middle half -1.1% to +0.9%), and +0.5% 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.
