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DTN's ShayLe Stewart outlines the 2022 feeder cattle outlook, noting beef cow slaughter of 1,413,300 head year to date, 179,100 above a year earlier and 309,800 above the five-year average. She cites Russia's war in Ukraine, Western drought, corn prices, feedlot costs, a weakening economy and rising inflation as volatile factors.
Heavy cow culling signals a shrinking breeding herd that tightens future feeder supply and supports cattle prices, while inflation and feed costs pressure feedlot margins.
dtnpf.comShayLe StewartMay 25, 2022After 28 past bullish macro events, Live Cattle moved a median -0.3% over 5 sessions (39% higher; middle half -1.2% to +0.9%), and +1.7% over 20.
After 21 past bullish macro events, Feeder Cattle moved a median +0.2% over 5 sessions (62% higher; middle half -0.7% to +1.4%), and +2.4% over 20.
After 78 past neutral macro events, Corn moved a median +0.3% over 5 sessions (55% higher; middle half -1.1% to +1.6%), and -0.6% 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.
