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Intense droughts and erratic rainfall have reduced pastureland across major US cattle states, forcing some ranchers to pay more for feed. The US beef cattle herd has hit a historic low, with experts largely blaming drought.
Climate change is compounding the problem through alternating heavy rain and long dry periods.
A structurally small herd limits beef supply and supports higher cattle prices. Higher feed costs also squeeze producer margins and may slow herd rebuilding.
investigatemidwest.orgJohn McCrackenMar 13, 2024After 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.
After 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.
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.
