USDA’s Cattle on Feed Report Friday afternoon is expected to show Oct. 1 feedlot inventories down fractionally from year-ago. But the number of cattle placed into feedlots in September is expected to be up 1.2%, which would be the second month in a row with placements above year-ago levels. Traders expect marektings likely declined by 2.7% versus September 2020. The following survey results are from Urner Barry.
Cattle on Feed | Avg. Trade Estimate (% of year-ago) | Range |
On Feed on Oct. 1 | 99.3 | 98.6-100.0 |
Placements in September | 101.2 | 97.5-104.0 |
Marketings in September | 97.3 | 97.0-98.9 |
Daily Livestock Report says, “Interestingly, the [feedlot] inventory on Aug. 1 was down 1.9% from a year ago and on Sept. 1 it was 1.4% lower than a year ago. As the analyst responses suggest, this inventory situation reflects a slower processing rate as well as robust placements in the last three months. If analysts are correct, the upcoming survey is also expected to show still relatively large supplies of market-ready cattle, with the inventory of 150+ day cattle at 2.257 million head, up 13.5% from last year and the inventory of 120+ day cattle at 4.1 million head, 3.2% higher than a year ago.”