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An Oklahoma State Extension outlook expects 2017 cattle prices to average near fourth-quarter 2016 levels but below 2016 averages. It cites macroeconomic uncertainty, rising rate expectations and volatility in live and feeder cattle futures as key risks.
Expected lower annual cattle prices and volatile futures make hedging harder for feeders and affect feed purchasing budgets.
agproud.comDerrell S. PeelJan 3, 2017After 37 past bearish macro events, Live Cattle moved a median -1.1% over 5 sessions (30% higher; middle half -4.3% to +0.4%), and -0.4% over 20.
After 27 past bearish macro events, Feeder Cattle moved a median -0.9% over 5 sessions (37% higher; middle half -3.7% to +0.4%), and 0.0% 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.
