Market News & Headlines >> U.S. Feedlot Inventory Smaller Than Expected
The monthly Cattle-on-Feed report released by USDA last Wednesday held friendly news for the cattle market as it pegged both October feedlot placements and the Nov. 1 feedlot inventory below trade expectations.
USDA pegged October feedlot placements at only 93.9% of a year earlier versus trade estimates that averaged 99.1% in a range from 94.0%-104.3%. In actual numbers, October placements totaled 2.248 million head, 145,000 below a year earlier.
USDA put the Nov. 1 feedlot inventory at 103.2% of a year earlier compared with trade estimated that averaged 104.4% in a range from 103.3%-105.6%. In actual numbers, the feedlot inventory totaled 11.692 million head, 360,000 head larger than a year earlier and 292,000 head larger than a month earlier.
October feedlot marketings were pegged by USDA at 104.8% of a year earlier compared with trade estimates that averaged 104.2% in a range from 103.2%-104.9%. In actual numbers, October marketing ran 1.887 million head, 86,000 head above a year earlier. Marketings were larger than a year earlier in part because October contained one more marketing day this year than it did last year.
October feedlot placements were below a year earlier in all weight classes with placements of cattle weighing 700-799 pounds running only 88.2% of a year earlier, while placements weighing 600-699 pounds were 89.0% of a year earlier.