April 25

4/25 – Friday’s Cattle on Feed report was near-term bearish and long-term bullish for cattle prices. The USDA said feedlot inventories, at 12.11M head on April 1, were up 1.7% from a year ago. Multiple years of drought and high feed costs have prompted ranchers to both liquidate herds and to push pasture-feeders onto feedlots at younger ages. Heifers on feedlots were also 1.7% above a year ago and show that ranchers are not holding back breeders (females) for herd replenishment. Beef prices will be pressured higher by demand for the big-3 grilling holidays – Memorial Day (5/30), Father’s Day (6/19), July 4th. Then, following a seasonal summer price dip, beef prices could again be looking at record-highs on tightening cattle supplies from late 2022 through 2024. Cattle futures set a 7-year high of $144.10/cwt on 4/21 and closed at $142.45 on 4/22. Forward futures for April 2023 are $157.53.