Friendly Cattle on Feed Report

Posted on 08/23/2019 3:36 PM

here were roughly 11.112 million head of cattle on feed as of Aug. 1, according to USDA’s monthly Cattle on feed report, near-steady with year-ago and just a bit lighter than the 11.179 million head analysts surveyed by Reuters anticipated. It was the highest Aug. 1 inventory since the series began in 1996.

Placements were down nearly 2% from year-ago, whereas traders had expected a near-steady tally, and marketings surged almost 7% versus year-ago levels, just a touch higher than anticipated.

 

USDA

Avg. Trade Estimate

(% of year-ago)

On Feed on Aug. 1

100.2

100.8

Placements in July

97.9

100.1

Marketings in July

106.9

106.4

 

The lighter weight Placement categories came in under year-ago levels, while heavier weights topped July 2018 levels. The market should give this data a friendly read on Monday.

“Marketings above expectations confirms aggressive sales pace by producers. The data seems to confirm the tightness of supplies indicated by steer dressed weights and the wide Choice/Select spread,” notes Sr. Economist Dan Vaught. He adds that Placements under year-ago could come as a surprise given how well the market had held together earlier this summer.

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