Loading…
Oklahoma State economist Derrell Peel argues that proposed government mandates on negotiated cash cattle trade would not lift producer prices and could add transaction costs. He notes packer margins have been far above feeder returns, with cutout values above $300/cwt while fed cattle struggled near $120/cwt.
The gap is attributed to the herd liquidation and plant closures.
Mandates could raise costs and possibly lower cattle prices, while the packer-producer margin gap keeps pressure on feeder returns. Price outcomes depend on whether policy changes reach the market.
calfnews.netAug 6, 2021After 102 past neutral policy events, Live Cattle moved a median +0.6% over 5 sessions (63% higher; middle half -0.7% to +1.2%), and +1.3% over 20.
After 28 past neutral policy events, Feeder Cattle moved a median +0.2% over 5 sessions (61% higher; middle half -0.6% to +0.8%), and +0.8% 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.
