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Experts quoted by the Lubbock Avalanche-Journal expect cattle supply to keep falling into 2023 because of drought and high corn costs, which could push prices to records within two years. Extreme heat has driven the largest cattle slaughter in a decade, about 80,000 head per week, and the US beef cow herd is down 2%.
Continued herd liquidation and high feed costs reduce cattle supply and support higher fed and feeder cattle prices. Elevated corn prices also raise feeding costs that feedlots must absorb.
lubbockonline.comNov 13, 2022After 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.
After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% 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.
