# USDA Cattle on Feed Report Hits Cattle Prices Hard

> USDA's October 1 Cattle on Feed report, released Friday October 20, showed 11.58 million head on feed, higher than expected. December live cattle fell $6.27 to a four-month low of $178.35 on Monday as speculators exited positions.

- Date: 2023-10-24 · published 2023-10-24T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/10309-usda-cattle-on-feed-report-hits-cattle-prices-hard
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Higher-than-expected feedlot numbers signal larger near-term beef supply, pressuring live cattle and feeder cattle prices and reducing demand for cattle-feed inputs in the short run.

## Read by commodity

- FCATTLE: bearish ▼
- LCATTLE: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| LCATTLE | 2023-10-22 | 1 | -1.6% | -5.1 | The bearish USDA Cattle on Feed report of Oct 20 showed higher-than-expected feedlot inventories, triggering speculative liquidation and a sharp drop in live cattle futures. |
| LCATTLE | 2023-10-23 | 1 | -1.2% | -3.4 | The On Feed report showed higher-than-expected cattle on feed, and December live cattle fell to a four-month low on Oct 23 as speculators liquidated, which is the supply and sentiment driver of the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| LCATTLE | 2023-11-14 | [USDA cattle report shows strong market prices support higher feedlot numbers - Oklahoma Farm Report](https://feedsoft.ai/events/33332-usda-cattle-report-shows-strong-market-prices-support-higher-feedlot-numbers.md) | -0.4% | -4.8% |
| LCATTLE | 2019-12-02 | [Understanding 'Placements' in the Cattle on Feed Report](https://feedsoft.ai/events/55713-understanding-placements-in-the-cattle-on-feed-report.md) | +0.5% | +3.9% |
| LCATTLE | 2021-05-27 | [USDA reports second largest inventory of cattle on feed since 1996](https://feedsoft.ai/events/4968-usda-reports-second-largest-inventory-of-cattle-on-feed-since-1996.md) | +0.3% | +3.9% |
| LCATTLE | 2023-12-22 | [Dec. 1 Cattle on Feed Up 3%](https://feedsoft.ai/events/32853-dec-1-cattle-on-feed-up-3.md) | +0.7% | +2.7% |
| LCATTLE | 2022-03-28 | [March 1 Cattle on Feed Up 1%](https://feedsoft.ai/events/42437-march-1-cattle-on-feed-up-1.md) | -0.7% | +0.9% |
| FCATTLE | 2023-11-14 | [USDA cattle report shows strong market prices support higher feedlot numbers - Oklahoma Farm Report](https://feedsoft.ai/events/33332-usda-cattle-report-shows-strong-market-prices-support-higher-feedlot-numbers.md) | -0.4% | -5.0% |
| FCATTLE | 2019-12-02 | [Understanding 'Placements' in the Cattle on Feed Report](https://feedsoft.ai/events/55713-understanding-placements-in-the-cattle-on-feed-report.md) | -0.5% | +2.2% |
| FCATTLE | 2021-05-27 | [USDA reports second largest inventory of cattle on feed since 1996](https://feedsoft.ai/events/4968-usda-reports-second-largest-inventory-of-cattle-on-feed-since-1996.md) | +12.1% | +15.1% |

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/ag/news/article/2023/10/23/usda-cattle-feed-report-hits-cattle

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.