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Feeder cattle markets fell sharply, with 850 lb steer prices down nearly $22/cwt over two weeks and 550 lb steer prices down $15 in Kentucky. Boxed beef values rose as consumers stocked up on retail meat during the pandemic.
Kenny Burdine says the market views the retail surge as short-term and expects future purchases to fall as inventories are consumed.
Steep feeder cattle declines reduce producer returns and placements, pressuring feedlot demand for feed grains and by-products, while the expected post-stockpiling drop in retail demand adds downside risk.
u.osu.eduSmith atMar 23, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
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.
Rising boxed beef values from pandemic retail demand supported fed cattle futures on the day, though weak feeder cash markets and expectations of fading demand tempered this.
