Cattle Futures Find Support on Limited Supply

There is now the outlook of tightening domestic supplies of beef (and perceived forthcoming higher beef prices) thanks to the reporting of the USDA yesterday.  Cattle futures retreated today from their recent slide.

Specifically, the USDA stated yesterday they expect domestic beef production a little less than 1% from last month’s estimate, and 4% total less than last years.  The entire domestic cattle-herd, coming into this year, has been the smallest since the early 1950’s.          

The sheer amount of cattle available for slaughter remains very tight as we move into the 2nd quarter of 2013,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current cattle futures situation.

The trend for cattle futures remains down, but feeders appear to be turning the corner.  As long as cattle futures remain a mixed-bag, I will await committing to direction until a clearer picture unfolds.

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