COF Report: Slightly Negative Compared to Expectations

Posted on 03/09/2017 10:21 AM

U.S. feedlot inventories totaled 10.165 million head on Aug. 1, up 163,000 head (1.6%) from year-ago. That modestly topped the average pre-report estimate that called for a 136,000 head (1.4%) increase. July placements slightly exceeded pre-report expectations at 1.6% above year-ago, while marketings last month came in just shy of the average pre-report estimate at 0.7% under the July 2015 tally.

Report
USDA
Avg. Trade Guess
Range
 
% of year-ago levels
On Feed
102
101.4
100.4-102.1
Placements
102
100.5
95.0-108.9
Marketings
99
99.7
98.5-103.2


July continued the trending of placing heavier animals into feedlots to limit the number of days on feed. Lightweight placements were down 3.6%, 6-weight placements were steady, 7-weight placements were up 10.1% and heavyweight placements were up 0.8% from year-ago levels.

With all three categories coming in on the negative side of the average pre-report trade estimates, the data gets a slight negative read. But cattle futures dropped ahead of the report, so there should be limited market impact Monday.

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