October Cattle on Feed Estimate 10/15/2020

The USDA is scheduled to release the September Cattle of Feed data October 23, 2020. We estimate the on feed inventory at 11.6 million head which is up 3% from a year ago and a record high for the date.

The supply of finished cattle projects to be adequate to slightly surplus for the next four months. The surprising bull markets in soybeans and corn will act as supporting forces in the cattle market longer term as higher corn and soybean meal values will raise the cost for feedlots.