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USDA's semiannual cattle inventory showed the U.S. beef cow herd fell to 28.9 million head, its lowest level since 1962, after a severe drought raised feed costs across the Plains. Heifers retained for beef cow replacement fell 6% from a year earlier to 5.16 million head.
Live cattle futures set new contract highs before settling slightly lower, while lean hog futures eased on heavier market-ready supplies.
A shrinking beef cow herd tightens future beef supply and supports cattle prices, while drought-driven feed costs make rebuilding herds harder. Hog prices faced pressure from larger near-term supplies.
agriculture.comReutersJan 31, 2023After 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.
After 159 past bearish report events, Lean Hogs moved a median -0.2% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +1.0% 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.
