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Rabobank said the U.S. cattle oversupply had cleared, citing strong domestic demand, Chinese and Southwest Asian beef buying, and larger-than-expected fed cattle marketings. A joint USDA and Statistics Canada report put the July 1 combined herd at 113 million head, down 1% year over year.
A shrinking herd and cleared backlog tighten cattle supplies and support live and feeder cattle prices going into the fall.
foodinstitute.comChris CampbellAug 31, 2021After 268 past bullish report events, Live Cattle moved a median +0.3% over 5 sessions (58% higher; middle half -0.7% to +1.4%), and +1.7% over 20.
After 227 past bullish report events, Feeder Cattle moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.5%), and +1.1% 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.
Rabobank's view that the U.S. cattle oversupply had cleared, plus strong domestic and Asian beef demand, was a bullish supply/demand signal that plausibly drove buying.
Rabobank's view that the US cattle oversupply has cleared, with strong demand and a smaller herd, is a bullish sentiment and supply factor published on Aug 31.
