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Cattle prices could see more pressure in early 2021

A livestock economist says the latest Cattle on Feed report indicates cattle prices could see more pressure at the start of 2021.

University of Missouri’s Scott Brown says there will be a lot of cattle to be marketed by next spring.  “That 800 to 899 category, up 82,000 head, I think that’s the one that might spill into early 2021 with more cattle than maybe we were anticipating early on,” he says. 

Brown says increased demand will be a necessity to offset the unexpected increase in supply. He tells Brownfield he was surprised at the placements in the heaviest category.  “The 900-plus category was really unchanged relative to a year ago,” he says.  “That tells me we’re a little more current in terms of what’s coming here in terms of slaughter between now and the end of the year.”

Both the on feed number and placements during August were within the pre-report estimates, but were at the top end of the range.

The report is considered neutral to slightly bearish for early-2021 prices.