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The USDA February Supply and Demand report lowered its 2019 beef production forecast, though the report otherwise changed little. A livestock market adviser said the cut could support cattle prices in the near term.
He also noted that the hog sector faces a glut in the first quarter and that African swine fever is a longer-term risk.
A smaller beef supply forecast tightens the outlook for beef and cattle prices, which supports feeder cattle demand for feed. Hog prices remain under pressure from surplus supply.
brownfieldagnews.comMeghan GrebnerFeb 8, 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 159 past bearish report events, Lean Hogs moved a median -0.2% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +1.0% 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.
