Analysts Hopeful on Upcoming Cattle on Feed Report
USDA will release it’s latest cattle on feed numbers Friday at 3 p.m.
The trade is expecting on feed, placements, and marketing to all go up.
Big jumps are expected in both placements and marketings, partly because of a couple extra days during the month, and also because of price and availability.
Analysts predict the findings of the report won’t be too bullish, and believe there could be big numbers.
“If you look at the bounce we’ve had off of lows recently, it’s got to be mostly technical in nature,” said Ted Seifried, vice president and chief market strategist of Zaner Ag Hedge. “We did have higher cash trade, but that happened after we already had been bouncing off our lows.”
The latest Sterling Profit Tracker shows improvement ahead of the upcoming report, but still in the red.
It shows average feed yard losses are $90/head, half of what it was one week ago.
A recent rally of $4 in fed cattle prices are helping drive margins toward breakeven, however, it could be worse. In 2014, feeders were losing nearly $275 on every animal.
