Cattle on Feed Report: All Categories Above Expectations
This afternoon's Cattle on Feed Report revealed all categories above traders' expectations. While Placements came in around five percentage points higher than expected, the total number of cattle On Feed as of Aug. 1 was just slightly above the average trade guess thanks to a higher-than-expected Markeings pace last month.
The large increase in Placements is due to harsh drought conditions in the Southern Plains. The breakdown of Placements by weight shows a big increase in lighterweight cattle coming to the feedlots than year-ago. Placements by category: under 600 lbs. up 50.6% from year-ago; 600-699 lbs. up 32.8% from year-ago; 700-799 lbs. up 11.2% from year-ago; and 800-plus pounders up 5.9% from year-ago levels.
At first glance, the increase in Placements over year-ago gives the report a bearish read, but with a large amount of cattle being placed at lighter weights and with grain prices "high," many of these calves aren't likely to reach their peak weight before being marketed.
| COF Report | USDA | Average | Range |
| % of year-ago levels | |||
| On Feed | 108% | 107.5% | 103.8-109.2 |
| Placements | 122% | 116.9 | 106.4-126.6 |
| Marketings | 100% | 96.3 | 94.7-98.0 |
