Last Half 2021 Steer Futures Trading premium to USDA Forecast – 06/16/2021

Published by David Tedrow on

In the June 2021 WAOB report USDA forecast Midwest Steers would average $118 in the July 2021 through December 2021 period. The accompanying scatter study plots Midwest finished steers as a function of per  capita domestic beef supply. We have plotted the current average futures price for finished cattle or $127/cwt at the time of publication.

Note that  futures are trading above the regression line.  Traders may believe high feed  costs will restrict beef supplies below that assumed by USDA thus accounting for the market premium.

 

 

Categories: Livestock

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