Cattle Backlog Starting to Clear

The USDA is scheduled to release the April Cattle of Feed data May 22, 2020. We estimate the on feed inventory at 11 million head which is down from 11.8 million head a year ago. Although fewer cattle were on hand the inventory likely is made up of a larger percentage of finished cattle due to plant closures last month. The slaughter pace has picked up this month. The carcass/live price ratio has dropped suggesting progress in clearing the backlog of cattle.