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USDA Economic Research Service economists report that feedlots have kept large numbers of cattle on feed as drought-reduced forage pushes calves into lots faster than normal. Packers have processed cattle at a pace above the past two years, with the largest fed slaughter of the year in the week ending August 27.
Beef production for fourth-quarter 2022 was raised by 40 million pounds.
Faster marketings and higher slaughter pull supply forward, and the outlook for larger 2023 beef output points to softer cattle prices ahead. Feeder demand may tighten as drought drives early placements.
agproud.comHannah Brooks, Russell KnightSep 23, 2022After 144 past bearish report events, Live Cattle moved a median -0.1% over 5 sessions (49% higher; middle half -1.1% to +0.9%), and +0.5% 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.
