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Record snow in parts of Montana and Wyoming over the weekend led cow-calf producers to struggle to keep calves alive. Feeder cattle contracts rallied $1 to $3 from March 27, with deferred contracts seeing the most support.
Thin feeder supplies and expected tighter second-half supply support higher feeder prices, and the widening May-August spread signals tightening deferred supply. Corn price moves also affect feeder economics.
dtnpf.comShayLe StewartMar 27, 2023After 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 445 past neutral weather events, Corn moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.6%), 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.
Record snow in Montana and Wyoming threatened calf survival and tightened expected supply, lifting feeder contracts $1-3, especially deferred months.
