Cattle on Feed and Spring Economic value for Finished Steers

USDA reported a near record 12 million head of cattle on feed March 1. February placements declined 2% from the previous year while feedlot marketings also declined 2% year over year.

The accompanying scatter study displays spring finished cattle prices as a function of the domestic beef supply per capita. Spring cattle futures are trading at a $6 premium, the March USDA estimate ($113 per cwt for April June).  

Point marked red is current USDA 2021 estimate.