The number of cattle sent to feedlots for fattening during October tumbled 6.1% from the same month last year, a larger drop than analysts expected that should support live cattle futures Monday.
In its monthly Cattle on Feed report, USDA said 2.108 million head of cattle were placed in U.S. feedlots last month, down from 2.246 million head in October 2021. Placements were expected to decline about 3.5%, based on a Reuters survey of analysts.
The report reflected ongoing contraction in the U.S. herd and tight supplies that are likely to keep cattle prices elevated well-into 2023. April 2023 live cattle futures settled today at $159.25, compared to $153.075 for the nearby December contract.
USDA estimated the U.S. large-lot inventory as of Nov. 1 at 11.706 million head, down 2.0% from the comparable year-ago level and larger than the 1.7% drop analysts expected on average. Feedlot marketings during October totaled 1.802 million head, up 0.6% from a year earlier and slightly under analyst expectations for an 0.8% increase.
Cattle on Feed Report: Feedlot placements drop more than expected
Cattle on Feed Report | USDA | Average Estimate (% of year-ago) |
On Feed on Nov. 1 | 98.0% | 98.3% |
Placements in October | 93.9% | 96.5% |
Marketings in October | 100.6% | 100.8% |