November 1 feedlot inventories are right in line with pre-report trade expectations, as were the number of calves entering feedlots in October. Cattle marketed in October, however, came in above the average pre-report trade expectation, indicating feedlots are exceptionally current on marketing of fed cattle. That should put a positive read on this report.
The supply of feeder cattle is also likely tightening up. With high-priced feed, feedlot managers should be looking to place more heavyweight calves than lightweights, but the tight supply of calves in general is making that difficult to do.
The weight breakdown on calves placed in October: Lightweight (under 600 lbs.) placements were up 11%; 6-weight placements wee down 6.25%; 7-weight placements were down 2.72%; and heavyweight (800 lbs. and up) placements were down 6.4%.
COF Report | USDA | Average | Range |
% of year-ago levels
| |||
On Feed | 104%
| 104.0 | 102.9-105.5 |
Placements | 99%
| 99.2 | 96.1-103.8 |
Marketings | 103%
| 101.4 | 99.5-103.2 |
