# U.S. livestock: Supply woes drag live cattle to five-year low - Grainews

> Chicago live cattle futures fell to a new contract low on September 1, 2016, with October down the daily three-cent limit. Cash cattle sold at $110-$111/cwt, $4-$5 lower than a week earlier, as packers bought less ahead of the Labor Day shutdown. Traders pointed to expected larger supplies and cheap feed allowing faster fattening.

- Date: 2016-09-01 · published 2016-09-01T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/8589-u-s-livestock-supply-woes-drag-live-cattle-to-five-year-low-grainews
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Heavier expected cattle supplies and weak packer demand point to further downward pressure on cattle prices. Cheap feed encourages feedlots to add weight, which keeps supplies plentiful.

## Read by commodity

- FCATTLE: bearish ▼
- LCATTLE: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| LCATTLE | 2016-09-01 | 1 | -3.8% | -3.8 | Same-day report of October live cattle limit-down to a contract low, with cash cattle $4-5 lower and packers buying less before Labor Day, directly describing the supply/demand drivers of the drop. |
| LCATTLE | 2016-09-06 | 5 | -7.0% | -3.6 | Oct live cattle fell the daily limit on Sept 1 to a contract low as cash cattle dropped $4-5 and traders expected larger supplies, which falls squarely in the 5-day window. |

## Sources

- grainews.ca: https://www.grainews.ca/daily/u-s-livestock-supply-woes-drag-live-cattle-to-five-year-low/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.