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USDA's Economic Research Service raised its 2019 beef production estimate on a faster pace of slaughter, though packers' fed cattle capacity fell 5% to 6% since August. The 2020 beef production forecast was cut by 120 million pounds to 27.6 billion pounds.
Feeder steer prices recovered more than $13 from their September low.
A lower 2020 beef output forecast and rising feeder cattle prices signal tighter supply ahead. Fewer placements in late 2019 are expected to reduce marketings in early 2020.
agproud.comRussell KnightDec 24, 2019After 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.
