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Fed cattle prices are at their highest levels since mid-2015, with heifers making up a large share of slaughter. Beef cow slaughter and liquidation are rising, and cattle placements were larger than expected in the latest Cattle on Feed report.
Drought conditions are cited as a factor behind producer liquidation.
Tightening future beef supplies from heifer retention and herd liquidation point to firmer cattle prices over time. Large feedlot inventories and placements may still weigh on near-term markets.
u.osu.eduSmith atMay 4, 2022After 268 past bullish report events, LCATTLE 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, FCATTLE 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.
