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Widespread heavy rain and flooding disrupted calf and feeder cattle marketing and left soils waterlogged across much of the country. Swollen Mississippi, Ohio and Missouri rivers largely halted barge traffic, and only 49% of corn was planted as of May 19, well behind last year and the five-year average.
Planting delays raise the risk of lower early corn supply and firmer corn prices, while barge disruption raises freight costs and can limit grain movement. Heavier beef output and weaker cattle prices add pressure on the cattle side.
cattlecurrent.comWLIMay 24, 2019After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% over 20.
Not enough comparable past events yet for a historical read.
After 18 past bearish weather events, Live Cattle moved a median +0.1% over 5 sessions (56% higher; middle half -0.7% to +0.9%), and -0.1% over 20.
After 29 past bearish weather events, Feeder Cattle moved a median +0.5% over 5 sessions (62% higher; middle half -0.5% to +2.6%), and +2.4% 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.
Flooding disrupted feeder marketing and delayed corn planting (49% planted), lifting feed cost expectations that pressure feeder prices.
