Yesterday Apr. Live Cattle came close to testing support in the 127.00 area posting a low of 127.60 before the market experienced a 225 point short covering rally.
The worst U.S. drought since the 1930s is shrinking a cattle herd that’s already the smallest since 1952 and signaling tighter beef supplies and higher costs for restaurant owners.
Cattle futures rose for the first time in a week after a government report showed the size of the U.S. herd fell to 61-year low, signaling tightening beef supplies. Hog prices dropped.