Cattle on Feed Catch Up to 2019; Likely to Tighten in 2021

In its latest Cattle on Feed report released this week, USDA pegged total domestic feedlot inventory at 12.0 million head as of Dec. 1, just slightly above the same time a year ago. A lot more smaller cattle and calves were placed on feed in November, and fed cattle marketings slipped slightly in November, signs that the marketplace is in “wait and see” mode with fed cattle market direction heading into the new year. Though it’s been a fairly volatile marketplace in the last few months — some months in 2020 have seen as much as a 27% departure from marketings the same month last year — look for consistency to return in 2021 as overall feedlot inventory tightens, one livestock economist said this week. See more analysis.