The US cattle on feed report highlights a 2% year over year increase in cattle on feed.  When you look at what is driving that increase it is all feeder cattle over 800 lbs, mostly steers.  Light weight cattle are well below 5 year averages (>10% below).  There will be overhead pressure on nearby fat prices as these cattle are worked through, but it will be interesting to see if the light weight cattle make their way to the feedlots later or not?  Cow slaughter is down another 16% year on year.  Another sign of retention in the cow herds.   Australian cow beef may be headed to China as they have opened up a live trade agreement with China. Watch for cull cow prices to lead this market higher, lean beef will become a premium if these cows don’t come to town.  We’ll see what happens after tax year end.