Cattle on Feed Report: Virtually Neutral

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%.

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.