• The objective of this work is to highlight the bullish and the bearish elements of the 2023 live cattle trade.
• We view tightening cattle supplies as a positive input for feeder cattle and live cattle prices.
• Demand is the other part of the price equation. As the U.S. economy weakens, we believe that demand related pressures will originate from the packing side of the business. These demand pressures can create headwinds for live cattle prices.
• If the packer represents both supply (beef) and demand (live cattle), highlighting the leading variables that influence each portion of the live cattle price equation can help empower the feedlot operator’s risk management approach in 2023.
• We provide both bearish and bullish narratives for live cattle in 2023 and provide our price predictions.
• Please contact Walter Kunisch Jr. with any questions.

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