According to the Aug. 6, 2020, Daily Livestock Report, disruptions across the cattle sector have greatly affected cattle feeding margins. July was one of the worst months for cattle feeding partly because fed cattle prices averaged the lowest price since 2010.
Lower placements in the second quarter in response to dismal economic returns should provide a relief after working through burdensome market-ready supplies of feedlot cattle. Optimism for late year cattle markets is gaining momentum.
LMIC is projecting positive feeding returns in late 2020 and early 2021, based on better fed cattle prices and lower feed costs compared to a year ago. Beef demand remains a lingering question for the rest of 2020.dlr-08-06-20