An Angus Policy Matters column explains that U.S. cattle supplies hit a 74-year low on Jan. 1, 2025.
It ties this to drought, high costs and the closure of the Mexican feeder cattle border over New World screwworm. The administration has promised a plan to rebuild the cattle herd.
A possible herd-rebuilding incentive could eventually add supply, but the border closure keeps feeder supply tight in the near term, supporting cattle prices.
After 17 past bullish policy events, Live Cattle moved a median -0.0% over 5 sessions (47% higher; middle half -1.2% to +0.9%), and +1.0% over 20.
After 10 past bullish policy events, Feeder Cattle moved a median +0.4% over 5 sessions (60% higher; middle half -0.9% to +2.2%), and +0.3% 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.