
Dry conditions in recent months are adding to challenges for livestock farmers preparing for winter. More than half of the U.S. beef cow herd (52%) and 42% of sheep inventory are in drought-affected regions.
Western states such as Nebraska, Colorado and Wyoming have the worst pasture ratings, with over 70% of pastures rated poor to very poor, while 70% of Illinois was affected by abnormally dry to severe drought.
Drought-stressed pastures reduce forage availability and push ranchers to buy more feed or cull herds, which slows herd rebuilding and can keep feeder cattle and beef supplies tight. Higher forage and hay demand supports alfalfa and grass hay prices.
After 79 past bullish weather events, Feeder Cattle moved a median +0.1% over 5 sessions (53% higher; middle half -1.4% to +1.7%), and +1.4% over 20.
After 80 past bullish weather events, Live Cattle moved a median +0.1% over 5 sessions (54% higher; middle half -0.8% to +1.3%), and +0.7% over 20.
Not 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.