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Consumers squeezed by food inflation are shifting from beef to cheaper chicken, according to ADM. ADM cut its global animal-feed demand outlook by 10 million to 15 million tons due to inflation, though chicken feed demand is outpacing cattle feed.
Shifting demand toward chicken supports poultry feed use while overall feed demand is reduced, a mixed signal for corn and meal demand and a bearish tilt for cattle.
bloomberg.comTarso Veloso, Michael HirtzerJul 26, 2022Not enough comparable past events yet for a historical read.
After 37 past bearish macro events, Live Cattle moved a median -1.1% over 5 sessions (30% higher; middle half -4.3% to +0.4%), and -0.4% over 20.
After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% 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.
