# Feeder Cattle Adjust to Limited Fed Cattle Opportunities and Higher Feeding Costs | Ohio BEEF Cattle Letter

> Colorado State University's Stephen Koontz reports that live and feeder cattle futures weakened substantially through April 2021. He says fed cattle slaughter is running near packer capacity of about 525 thousand head per week, and that large front-loaded fed inventories need two to three more months to clear.

- Date: 2021-05-12 · published 2021-05-12T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/47232-feeder-cattle-adjust-to-limited-fed-cattle-opportunities-and-higher-feeding
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Packer capacity limits and heavy finished inventories cap cash fed cattle prices, while higher costs of gain weigh on feeder values. Feed demand from feedlots may soften while these inventories are worked down.

## Read by commodity

- FCATTLE: bearish ▼
- LCATTLE: bearish ▼

## Sources

- u.osu.edu: https://u.osu.edu/beef/2021/05/12/feeder-cattle-adjust-to-limited-fed-cattle-opportunities-and-higher-feeding-costs/

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