Feeder Cattle Supply – 07/26/2021

The US feeder cattle supply on July 1, 2021  totaled 36.7 million head compared to 36.7 million head a year ago based on the July 2021 cattle report. The accompanying scatter chart plots the July/December average price for deliverable feeder steers (650 -900 # ) as a function of the July 1 feeder cattle supply. Note feeder futures are currently very near the regression line. Barring an economic downturn, which would depress consumer demand for fed beef, feeder cattle should be well supported in the second half of the year.