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Winter storms and mud stalled fed cattle trade this week, with no cash trade reported as February live cattle traded near $127.10 after a correction. Packer margins fell to about $28 per head, the lowest in a long time, and packers were expected to cut slaughter.
Feeders in Kansas were eager to move cattle before they lost more weight.
Packers reducing slaughter to protect margins can tighten fed cattle supply and support prices, though weather-related delays add uncertainty. Feed demand may also soften if feeders hold cattle on feed longer than planned.
wlj.netPete Crow, WLJ publisher emeritusJan 18, 2019After 80 past bullish weather events, LCATTLE moved a median +0.1% over 5 sessions (54% higher; middle half -0.8% to +1.3%), 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.
