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Steve Kay's column notes that U.S. cattle prices have held in a $118-120/cwt range for two months while packer margins have diverged from historical patterns. He recalls how the 2010-2012 drought shrank the herd and led to plant closures and record cattle prices in 2014.
He argues that supply and demand determine prices.
Packer margin pressure and steady cattle prices shape feedlot placements and the derived demand for feed, so buyers should watch cattle supply.
wlj.netSteve Kay, WLJ columnistJun 4, 2021Not enough comparable past events yet for a historical read.
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.
