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An Oklahoma State University Extension column dated May 29, 2023 says increasingly tight cattle supplies will squeeze margins for stocker, feedlot, packer and retail segments. It notes retail beef prices are roughly flat over 16 months while Choice boxed beef is up over 14 percent year over year and fed cattle prices are up 25 percent.
The author expects the squeeze to vary in severity and timing across segments.
Tight cattle supply and rising wholesale beef values support higher fed and feeder cattle prices, which raises costs for feedlots and buyers of cattle-based feed inputs. Expected margin pressure could eventually slow packer throughput and demand.
extension.okstate.eduMay 30, 2023After 28 past bullish macro events, LCATTLE moved a median -0.3% over 5 sessions (39% higher; middle half -1.2% to +0.9%), and +1.7% over 20.
After 21 past bullish macro events, FCATTLE moved a median +0.2% over 5 sessions (62% higher; middle half -0.7% to +1.4%), and +2.4% 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.
