# CattleFax Forecasts Producer Profitability in 2023 with Potential Drought Relief for the West

> CattleFax said cattle producers should see favorable prices and profitability in 2023, as drought left the industry with its smallest cattle supply since 2015. Forecasters expect La Niña to fade, with neutral conditions and possibly El Niño later in the year. Improved weather could ease feed costs in the second half of 2023.

- Date: 2023-02-03 · published 2023-02-03T12:00:00.000Z
- Category: weather · region US · magnitude low
- Page: https://feedsoft.ai/events/37485-cattlefax-forecasts-producer-profitability-in-2023-with-potential-drought
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

A small supply of cattle supports prices, while expected drought relief could lower feed costs and widen cow-calf margins. The weather outlook is a key factor for pasture and feed supply.

## Read by commodity

- FCATTLE: bullish ▲
- LCATTLE: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| LCATTLE | 2022-07-28 | [Fewer cattle expected as cow herds shrink due to drought \| The Western Producer](https://feedsoft.ai/events/40618-fewer-cattle-expected-as-cow-herds-shrink-due-to-drought-the-western-producer.md) | -0.1% | +3.7% |
| LCATTLE | 2025-02-06 | [CattleFax Forecasts Continued Strong Demand and High Price Outlook for Cattle Producers](https://feedsoft.ai/events/26180-cattlefax-forecasts-continued-strong-demand-and-high-price-outlook-for-cattle.md) | -1.7% | -4.6% |
| LCATTLE | 2024-01-01 | [As drought tightened cattle production, 2023 markets soared  - High Plains Journal](https://feedsoft.ai/events/32247-as-drought-tightened-cattle-production-2023-markets-soared-high-plains-journal.md) | -0.4% | +2.3% |
| LCATTLE | 2022-11-02 | [Terrain \| Drought-forced Cattle Movement Expected to Impact Markets into 2023](https://feedsoft.ai/events/7228-terrain-drought-forced-cattle-movement-expected-to-impact-markets-into-2023.md) | +0.4% | +1.7% |
| LCATTLE | 2022-06-24 | [Drought conditions pull cattle forward in 2022; limited cattle supplies draw down 2023 production - Progressive Cattle \| Ag Proud](https://feedsoft.ai/events/41082-drought-conditions-pull-cattle-forward-in-2022-limited-cattle-supplies-draw.md) | +1.3% | -0.4% |
| FCATTLE | 2022-08-09 | [Coping with high feed prices, drought in 2022
						 \| The Cattle Site](https://feedsoft.ai/events/40182-coping-with-high-feed-prices-drought-in-2022-the-cattle-site.md) | -0.7% | +1.6% |
| FCATTLE | 2022-07-28 | [Fewer cattle expected as cow herds shrink due to drought \| The Western Producer](https://feedsoft.ai/events/40618-fewer-cattle-expected-as-cow-herds-shrink-due-to-drought-the-western-producer.md) | +0.1% | +1.2% |
| FCATTLE | 2025-02-06 | [CattleFax Forecasts Continued Strong Demand and High Price Outlook for Cattle Producers](https://feedsoft.ai/events/26180-cattlefax-forecasts-continued-strong-demand-and-high-price-outlook-for-cattle.md) | -2.1% | +1.2% |

## Sources

- drovers.com: https://www.drovers.com/news/industry/cattlefax-forecasts-producer-profitability-2023-potential-drought-relief-west

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.