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Severe drought across the West and parts of the Midwest has forced cow-calf producers to liquidate herds. Higher feeder cattle prices are expected as the reduced cowherd works through the market.
Herd liquidation shrinks future calf supplies, which supports feeder cattle prices and makes restocking costly for producers.
dtnpf.comShayLe StewartNov 10, 2021After 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.
