The USDA this week released a report documenting price trends following the release of livestock reports including Cattle on Feed, Quarterly Hogs and Pigs, and Milk Production.
For example, over eleven years from 1998 through 2008, during the weeks prior to release of Cattle on Feed reports, cattle prices increased in 6.6 months of each year on average and declined in 5.4 months per year. Prices increased in more months than they decreased in five of those years, decreased more than increased in four years and were tied at six months each in two years.
During weeks following Cattle on Feed reports, the trend was different, with price increases on average 5.8 months of each year and decreases in 6.2 months each year. In four of the 11 years, prices increased in more months than decreased, while seven of the years saw prices decline in more months than they increased.
When it comes to barrel cheese prices and announced milk prices, from 2004 to 2008, cheese prices were up and average of 7.2 months each year the week ahead of the report. And, cheese prices were also up an average of 6.6 months a year in the week following the milk price report.