Tracking Feeder cattle Prices

Feeder cattle are trading well below levels established in recent years. Feeder cattle are a residual claimant with bids based on the anticipated revenue from fat cattle and the cost of feed to finish cattle. Finished cattle have declined roughly 27% since the beginning of the current virus pandemic  while feeders have lost 22%.

 Cheaper coarse grain has cushioned feeder cattle values but fat cattle losses remain the dominant force in the feeder market. Those that expect the economy will reopen by early summer can be bullish feeder cattle with the past seasonal for feeder prices to strengthen into the autumn a contributing factor.