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Cash fed cattle sold at $125 and feeder cattle futures were testing a possible double bottom near contract lows. The Federal Reserve shifted from hawkish to dovish, and a strong US dollar was weighing on all markets, including corn.
A stronger dollar makes US exports less competitive and pressures corn and other feed grain prices, while the dovish Fed signal adds uncertainty for cattle demand.
farmprogress.comChris Swift 1Jun 16, 2016After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
After 56 past macro events, Feeder Cattle moved a median +0.1% over 5 sessions (52% higher; middle half -1.6% to +1.3%), and +1.4% 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.
