Market Overview: Live Cattle (LC)

The Cattle industry is truly the last bastion of small independent producers left in United States agribusiness. Approximately 67 percent of the Cattle produced in the United States are small to mid size, single, family-owned Cattle operations with less than 500 head. According to a survey done in 1996, almost half of the Cattle businesses in operation have been in the same family for over 50 years.

Seasonal Overview:

Live Cattle prices tend toward strength in January through March as transportation routes and the Cattle production cycle tend to create a period where supply is limited. When the inland barge routes free up from freezing in the spring, grain supplies begin to tighten, and the spring calf population increases, prices usually fall from early March through mid June. During the summer months beef prices tend to increase due to high demand from the fast food industry, and Live Cattle prices tend to increase through to year end, with minor breaks occurring due to spring born Cattle moving to stocker operations.

Live Cattle: (High: Mar-Apr//Low: Jan or Jun) Breeding patterns tend to drive production pattern, with fewer animals available for slaughter during March-April while cold weather slows weight gain. Slaughter heaviest during May/June. January low often the result of price structure.

Chart courtesy of Moore Research Center, Inc.