# Lotfeeder margins pressure the market | ACT

> Cattle on feed reached a record 1.12 million head at the end of June despite 10-year-high grain prices. Feedlot margins have turned negative, with cattle put on feed last week showing a loss of about A$71 per head.

- Date: 2018-08-30 · published 2018-08-30T12:00:00.000Z
- Category: market · region Australia · magnitude low
- Page: https://feedsoft.ai/events/63670-lotfeeder-margins-pressure-the-market-act
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Negative feedlot margins typically lead to fewer cattle on feed, which tightens finished cattle supply and could lift grain-fed prices while pressuring feeder demand and grain-fed cattle prices.

## Read by commodity

- CORN: bullish ▲
- FCATTLE: bearish ▼
- LCATTLE: bullish ▲

## Sources

- farmonline.com.au: https://www.farmonline.com.au/story/5616936/lotfeeder-margins-pressure-the-market/

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