Market News & Headlines >> Another Month of Larger Feedlot Placements
The livestock trade is expecting Friday afternoon’s monthly Cattle-on-Feed report from USDA to peg the Oct. 1 U.S. feedlot inventory at the highest level in five years and show feedlot placements were above a year earlier for the seventh straight month in September.
Trade estimates of the Oct. 1 feedlot inventory average 104.6% of a year earlier in a range from 103.4%-106.2%, according to a Reuters News Service survey of 10 analysts. At the average of trade estimates, the Oct. 1 feedlot inventory would be the largest since 2012 at 10.732 million head, up 476,000 head from a year earlier.
Pre-report estimates of the number of cattle placed on feed during September average 108% of a year earlier in a range from 103.4%-116.0%. At the average of trade estimates, September feedlot placements would equal 2.046 million head, 151,000 head above a year earlier and would be the largest in six years. Last year’s September placements were the smallest on record going back to 1996.
Expectations for September feedlot marketings average 102.6% of a year earlier in a range from 101.2%-103.1%. If marketings come in above a year earlier, it would be the fourteen straight month they have done so. At the average of trade expectations, September marketings would be the largest in seven years and would equal 1.777 million head, 45,000 head above a year earlier.