Traders Well Prepared for Cattle on Feed Report

Posted on 03/09/2017 10:18 AM

Traders did an excellent job anticipating what USDA's Cattle on Feed Report would show. The average pre-report estimates for all three categories were in line with USDA's actual numbers. The Feb. 1 feedlot inventory at 10.782 million head was just 3,000 head less than the average pre-report estimate, while placements were 4,000 head more than expected and marketings were 6,000 head higher than anticipated. This is about as neutral of a report as the market can get.

Cattle on Feed
USDA
Avg. Trade Guess
Range
 
 
% of year-ago levels
On Feed
101
100.7
99.8-102.5
Placements
111
111.1
106.8-118.2
Marketings
110
109.8
106.3-111.0


USDA added several weight categories to its monthly placements data. It now shows placements of animals from 900 to 999 lbs. and 1,000-plus pounds. January placements showed lightweights (under 600 lbs.) up 11.8%, 6-weights up 21.9%, 7-weights up 18.4%, 8-weights down 4.7%, 9-weights up 5.5% and heavyweights (1,000-plus lbs.) up 12.5%. There were only 116,000 head of 9-weights and only 45,000 head of heavyweight animals placed on feed during January out of 1.981-million-head total.

With the report numbers falling in line with pre-report expectations, traders' focus next week will be on wholesale beef trade and whether there's enough support to extend this week's strong gains in the cash market.

 

"

Add new comment