
DTN analyst ShayLe Stewart says feeder cattle prices are being supported by tight supplies and strong beef demand. Recent rains in parts of the West are easing drought, while the South remains dry, and early summer feeder calf sales are weeks away.
Tight feeder supplies and strong demand point to firm feeder cattle prices, while the timing of drought relief will affect the summer calf market and feed demand.
After 79 past bullish weather events, Feeder Cattle moved a median +0.1% over 5 sessions (53% higher; middle half -1.4% to +1.7%), and +1.4% over 20.
After 80 past bullish weather events, Live Cattle moved a median +0.1% over 5 sessions (54% higher; middle half -0.8% to +1.3%), and +0.7% 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.
Tight feeder supplies and strong beef demand supported feeder prices, with rains easing drought and lowering feed and pasture risk.