USDA estimated there were 11.673 million head of cattle in large feedlots (1,000-plus head) as of Dec. 1, down 312,000 head (2.6%) from year-ago but 24,000 head more than the average pre-report estimate implied. November placements dropped 42,000 head (2.1%), though traders expected a 4.2% decline from year-ago. November marketings were slightly stronger than anticipated at 1.2% above year-ago.
Cattle on Feed Report | USDA | Average Estimate (% of year-ago) |
On Feed on Dec. 1 | 97.4 | 97.2 |
Placements in November | 97.9 | 95.8 |
Marketings in November | 101.2 | 100.9 |
Placements declined 4.4% from year-ago for lightweights (under 600 lbs.), 4.1% for 6-weights and 2.4% for 8-weights. But feedlots placed 1.3% more 7-weights and 3.8% more 9-weights than year-ago during November. Heavyweight (1,000-plus lbs.) placements were unchanged.
Placements declined 75,000 head from year-ago in Texas and 15,000 head each in Colorado and Kansas. Nebraska placed 20,000 more cattle on feed and “other states” increased placements by 43,000 head.
There’s nothing in this data to greatly move the market next Tuesday. While placements were near the top of the range of trade estimates, they still declined notably from year-ago.