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LMIC estimated February 2020 fed cattle closeout profitability fell below January's, as faltering cash fed cattle prices tied to coronavirus developments reduced returns on unhedged animals. Futures indicated losses for summer closeouts.
Weaker feeding margins and projected summer losses may reduce cattle placements and feed demand, pressuring feed ingredient prices.
wlj.netJames Robb, Livestock Marketing Information Center senior economistMar 9, 2020After 144 past bearish report events, Live Cattle moved a median -0.1% over 5 sessions (49% higher; middle half -1.1% to +0.9%), and +0.5% over 20.
After 1,102 past bearish report events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.8% to +1.3%), and +0.0% 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.
