Cattle on Feed Report: Virtually Neutral

The report data was virtually inline with expectations, which should have little impact on prices Monday.

Cattle on Feed Report
Cattle on Feed Report
(Pro Farmer)

USDA estimated there were 11.931 million head of cattle in large feedlots (1,000-plus head) as of Nov. 1, up 195,000 head (1.7%) from last year. That marked the second straight month of year-over-year increases in the feedlot inventory following a full year of declines. October placements topped year-ago by 3.8%, while marketings declined by 2.5%.

Cattle on Feed Report

USDA
(% of year-ago)

Average Estimate

(% of year-ago)

On Feed on Nov. 1

101.7

101.8

Placements in October

103.8

104.9

Marketings in October

97.5

97.9

Placements increased from year-ago in all weight categories except heavyweights (1,000-plus lbs.), which were equal to last year and only accounted for 3.7% of the total number of cattle moved into feedlots last month. Placements increased 2.8% for lightweights (under 600 lbs.), 2.2% for 6-weights, 4.5% for 7-weights, 5.1% for 8-weights and 7.9% for 9-weights. Placements increased 30,000 head in Kansas and 25,000 head each in Nebraska and Colorado, while Texas was unchanged and “other states” declined 1,000 head from year-ago levels.

The report data was virtually inline with expectations, which should have little impact on prices Monday. A greater focus will be on the cash cattle market as traders watch to see if prices stabilize following recent weakness.