Cattle on Feed Report: Dec. 1 feedlot inventory slightly bigger than expected

USDA estimated the Dec. 1 large feedlot (1,000-plus) head inventory increased 313,000 head (2.7%) from year-ago. Traders expected feedlot supplies to rise 257,000 head (2.2%). November placements of cattle into feedlots declined 1.9%, though traders anticipated a 3.8% decline. November marketings fell 7.4% compared with the expected 6.7% drop.

Placements were unchanged from year-ago for lightweights (under 600 lbs.), down 4.3% for 6-weights, down 5.0% for 7-weights, up 1.1% for 8-weights, up 3.7% for 9-weights and down 5.6% for heavyweights (1,000-plus lbs). Placements fell 37,000 head from year-ago, with Kansas down 35,000 head, Nebraska down 15,000 head and “other states” down 17,000 head, while Texas increased 20,000 head and Colorado rose 10,000 head.

The data is mildly negative compared to pre-report expectations, though we doubt it will have much of lasting market impact since traders won’t get to trade the data until after Christmas.