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Drought has intensified across the Southern Plains and Southeast, driving beef cow slaughter 14% above last year. Cattle on feed have been higher because cattle were placed sooner, while beef exports run more than 5% above 2021 levels.
Continued culling and drought-driven supply losses are expected to tighten the cattle supply further, supporting higher feeder cattle prices into fall.
u.osu.eduSmith atJul 20, 2022After 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 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.
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.
