The choice beef cutout spiked in late December after extreme winter weather disrupted feedlot operations, cattle movement and processing plant workforce. Fed cattle slaughter was 15% lower for the week of Dec.
19 than two weeks earlier. The rib primal reached $548/cwt, the year's high, as buyers sought supply.
Weather-driven slaughter cuts tightened beef supply already at multi-year lows, lifting boxed beef and supporting live and feeder cattle prices.
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.
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.
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.