In addition to the following variables, if you are trading cattle, you will also want to be aware that the USDA issues reports that may impact the futures market including Cattle on Feed and Livestock Slaughter. These reports (and others) may be found in the economics and statistics sections of the USDA website. Feeder cattle auction summaries from various states may also be a valuable source of pricing information. Weekly summaries may be found here.
Possible Trends - Cattle population and the number of calves may impact prices and the time of year may also be perceived as important.
Import and Export - Restrictions and trade agreements can often impact the quantity of imports and exports to and from various countries.
Health Issues - Concerns over red meat consumption and possible links to colon cancer or saturated fat values are often weighed against beef as a rich source of linoleic acid and B vitamins. As health news comes and goes, domestic consumption or demand may be impacted.
Mad Cow Disease - Otherwise known as bovine spongiform encephalopathy, Mad Cow scares can wreak havoc on the cattle industry and breakouts can lead to massive slaughter and burn campaigns. Since the BSE prion cannot be destroyed by cooking, the panic of spread can easily affect both demand and supply of cattle.
Feed Costs: Higher feed costs can typically affect the weight and rate at which a farmer will take livestock to market. Since cattle are fed a combination of roughage, grain and protein supplements (soybean meal is a popular protein source), prices for corn, alfalfa, soybean, and even wheat can impact choice of feed and affect the feed-to-meat conversion - as well as the number of days on the feedlot.
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