
Cattle futures rallied on January 26 after the Cattle on Feed report showed December placements down 5.38% and on-feed inventory down 3.15% to 11.45 million head. Live cattle closed $1 to $1.25 higher and feeders gained $1.90 to $2.50.
Lower on-feed inventory and reduced placements tighten the feeder cattle supply, supporting cattle prices and feed demand from feedlots. The move is a routine reaction to the report.
After 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.