Cattle on Feed Report: Bullish

Posted on 11/21/2018 12:21 PM

The Nov. 1 feedlot inventory at 11.692 million head was up 360,000 head (3.2%) from last year, but that was 136,000 head less than anticipated in USDA’s Cattle on Feed Report. October placements were below the bottom end of the range of pre-report estimates at 6.1% less than year-ago, while Marketings were at the top end of expectations.

 

USDA
(% of year-ago)

Avg. Trade Estimate

(% of year-ago)

On Feed
Nov. 1

103.2

104.4

Placements in October

93.9

99.1

Marketings in October

104.8

104.2

 

Placements were down from year-ago in all but the two heaviest categories.  Placements of 9-weights rose 12.5%, while heavyweights (1,000 lbs.-plus) were steady with year-ago. But those two categories only accounted for 12.0% of all animals placed into feedlots last month. Placements were down 5.2% in lightweight calves (under 600 lbs.), down 11.0% in 6-weights, down 11.8% in 7-weights and down 1.4% in 8-weights compared to last year.

The cattle market had a positive response to the data, as all three categories were on the bullish side of the pre-report estimates.

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