# Lots of Cattle, but No Beef

> DTN reports fat cattle feeders cannot get bids for over a month while USDA boxed beef cutout rose above $4 per pound, a record. Grocers Kroger, Costco, Walmart and Hy-Vee are limiting meat sales as packing plants shut due to COVID-19.

- Date: 2020-05-05 · published 2020-05-05T12:00:00.000Z
- Category: disease · region US · magnitude medium
- Page: https://feedsoft.ai/events/53259-lots-of-cattle-but-no-beef
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

The widening gap between cash cattle and boxed beef highlights packer disruption that suppresses live cattle demand, a bearish factor for feeder and fed cattle values.

## Read by commodity

- FCATTLE: bearish ▼
- LCATTLE: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| LCATTLE | 2020-05-11 | 1 | +5.5% | 3.5 | Record boxed beef cutout above $4/lb and retail rationing signaled strong packer margins, supporting a rebound in depressed fat cattle prices. |
| LCATTLE | 2020-05-11 | 5 | +7.3% | 2.9 | Record boxed beef cutout above $4/lb and packing plant shutdowns signaled strong packer margins and a likely resumption of buying, supporting futures despite the cash bid gap. |
| LCATTLE | 2020-05-19 | 5 | +6.0% | 2.8 | Record boxed beef above $4/lb with feeders unable to get bids points to a severe supply bottleneck and a large beef-cattle price gap that set up the rebound. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| LCATTLE | 2022-06-17 | [May cattle exports near 60,000 head - Beef Central](https://feedsoft.ai/events/40865-may-cattle-exports-near-60-000-head-beef-central.md) | +0.3% | +0.6% |
| LCATTLE | 2020-04-02 | [Why beef prices are up and cattle prices are down](https://feedsoft.ai/events/6286-why-beef-prices-are-up-and-cattle-prices-are-down.md) | -5.8% | -13.4% |
| LCATTLE | 2020-03-25 | [Kentucky Beef Cattle Market Update \| Farms.com](https://feedsoft.ai/events/7963-kentucky-beef-cattle-market-update-farms-com.md) | +2.1% | -11.7% |
| LCATTLE | 2019-09-05 | [Kay’s Cuts: Abattoir fire strikes at heart of US cattle market - Beef Central](https://feedsoft.ai/events/6591-kay-s-cuts-abattoir-fire-strikes-at-heart-of-us-cattle-market-beef-central.md) | -2.1% | +3.2% |
| LCATTLE | 2022-03-27 | [The threat that has the northern cattle industry on high alert - Beef Central](https://feedsoft.ai/events/42222-the-threat-that-has-the-northern-cattle-industry-on-high-alert-beef-central.md) | -0.7% | +0.9% |
| FCATTLE | 2022-06-17 | [May cattle exports near 60,000 head - Beef Central](https://feedsoft.ai/events/40865-may-cattle-exports-near-60-000-head-beef-central.md) | +0.7% | +3.1% |
| FCATTLE | 2020-04-02 | [Why beef prices are up and cattle prices are down](https://feedsoft.ai/events/6286-why-beef-prices-are-up-and-cattle-prices-are-down.md) | +2.1% | +1.5% |
| FCATTLE | 2020-03-25 | [Kentucky Beef Cattle Market Update \| Farms.com](https://feedsoft.ai/events/7963-kentucky-beef-cattle-market-update-farms-com.md) | -6.4% | -9.0% |

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/ag/news/article/2020/05/05/covid-19-packer-crisis-leaves-fed?referrer=twitter

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