Cattle on Feed Report: Neutral
Traders did a good job of anticipating this afternoon's USDA Cattle on Feed Report, as all categories came in near traders' pre-report expectations. The report showed On Feed at 95%, Placements at 87% and Marketings at 103% of year-ago levels. The report reflects traders' expectations that producers worked to get feedlots current, which should translate into smaller marketings in next month's report.
| COF Report | USDA | Average | Range |
| % of year-ago levels | |||
| On Feed | 95 | 94.6 | 93.5-96.0 |
| Placements | 87 | 87.3 | 83.3-92.0 |
| Marketings | 103 | 102.6 | 100.8-103.5 |
The weight breakdown of placements shows calves 600 lbs. and lighter down 19%, 600-699 lbs. down 14.4%, 700-799 lbs. down 10.7%, and 800 lbs. and heavier down 2.6% from last month.
The report should get a neutral read by the market, but is supportive for deferred futures as it once again reminds traders of the tightening supply situation.
