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Colorado State University's Stephen Koontz reports that live and feeder cattle futures weakened substantially through April 2021. He says fed cattle slaughter is running near packer capacity of about 525 thousand head per week, and that large front-loaded fed inventories need two to three more months to clear.
Packer capacity limits and heavy finished inventories cap cash fed cattle prices, while higher costs of gain weigh on feeder values. Feed demand from feedlots may soften while these inventories are worked down.
u.osu.eduSmith atMay 12, 2021Not enough comparable past events yet for a historical read.
Not 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.
