The Cattle on Feed Report, which was delayed from earlier this month, is getting a mildly positive read as it showed On Feed slightly below the average pre-report trade guess at 92% thanks to stronger-than-expected Marketings of 106% of year-ago levels. Placements were slightly above expectations at 101% of year-ago.
Cattle on Feed | USDA | Avg. Trade Guess | Range |
% of year-ago levels | |||
On Feed | 92 | 92.6 | 91.6-93.7 |
Placements | 101 | 100.7 | 97.5-107.0 |
Marketings | 106 | 104.3 | 100.1-106.7 |
The breakdown of calves placed on feed last month shows lighter-weight calves went into feedlots at a slower pace than year-ago, while placements of heavier-weight calves picked up. Calves under 600 lbs. were down 7.8% from year-ago, with 600-pounders down 5.6% from year-ago; 700-pounders rose by 8.1% from year-ago and 800-plus pounders were up 6.5% from year-ago.
The report could help support live cattle futures tomorrow, although more focus is on the cash cattle market. October cattle expired today at $134.50 and December live cattle ended the day around $2 below that level, which could help to support the contract if cash trade comes in at least steady with week-ago.
