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Chihuahua, Mexico has suffered two years of severe drought, with rainfall well below average and pastures bare. Producers have liquidated cows and relocated herds, while the US border closure to Mexican cattle from late November through early February cut shipments.
Holding cattle is costly, and producers are hoping for a normal June rainy season.
Reduced Mexican herds and limited feed cut the feeder cattle supply available to US feedlots, supporting feeder cattle prices. Continued drought would keep the Mexican supply tight.
extension.okstate.eduMar 24, 2024After 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.
After 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.
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.
