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A American Farm Bureau economist analysis notes slaughter steer prices near $140, 17.5% above 2021, while US cattle inventory on January 1, 2022 was down 2% from 2021. The cow herd fell 2.3% and heifer inventory was 19.8 million head.
The report reviews the USDA Cattle on Feed release of May 20 and how inflation and input costs will affect producer margins.
A shrinking breeding herd supports cattle prices over the coming years, but high feed and input costs squeeze producer returns and can accelerate herd liquidation. Feed buyers should expect tight feeder supply to persist.
fb.orgBernt NelsonJun 1, 2022After 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 770 past neutral report events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.1% to +1.6%), 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.
