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Elliott Dennis discusses how video auctions and CME feeder cattle futures indicate fall 2021 feeder prices. He cites worsening Western US drought forcing earlier cattle marketing and higher grain prices from low stocks and global corn production concerns, both of which can lower feeder prices.
Increased feeder supply from drought-driven early sales and weaker feedlot demand from higher corn costs point to lower feeder cattle prices this fall. Feed buyers face a costlier grain input.
feedlotmagazine.comSource Elliott Dennis, Livestock Marketing, Risk Management Economist, Photo credit Troy WalzSep 10, 2021After 29 past bearish weather events, FCATTLE moved a median +0.5% over 5 sessions (62% higher; middle half -0.5% to +2.6%), and +2.4% over 20.
After 1,465 past bullish weather events, CORN moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% 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.
