Cattle on Feed Report: In line with pre-report estimates... USDA estimated there were 11.948 million head of cattle in large feedlots (1,000-plus head) as of Nov. 1, down 25,000 head (0.2%) from year-ago. That matched the average pre-report estimate. Feedlots placed 2.4% more cattle on feed last month, though October 2020 placements were light and this year’s figure was down significantly from two years ago and smaller than the five-year average. Marketings dropped 4.5% from year-ago, though that was somewhat skewed by one fewer working day this year.
Cattle on Feed Report | USDA | Avg. Trade Estimate (% of year-ago) |
On Feed Nov. 1 | 99.8 | 99.8 |
Placements in October | 102.4 | 102.2 |
Marketings in October | 95.5 | 96.3 |
Placements increased in all of the weight categories except heavyweights (1,000-plus lbs.), which dropped 5.6% from year-ago. Placements rose versus year-ago for lightweights (up 0.9%), 6-weights (up 1.0%), 7-weights (up 1.1%), 8-weights (up 9.8%) and 9-weights (up 2.7%).
There’s nothing in this report to influence price action in cattle futures on Monday, as the figures lined up well with the average pre-report estimates. Focus will remain on the cash cattle market to see if packers continue to actively compete for tightening market-ready supplies with higher cash prices again next week or if they back off after aggressively buying cattle the past three weeks.