Market News & Headlines >> Cattle-on-Feed Report Friendly for Prices
Friday’s USDA Cattle-on-Feed report held friendly news for the cattle market as it pegged July feedlot placements near the low end of trade expectations breaking a string of four straight months of higher-than-expected placements.
As a result of the lower-than-expected placements, the Aug. 1 feedlot inventory was also below the average of trade estimates, although it was still the largest in five years.
USDA pegged July feedlot placements at 1.615 million head or 102.7% of a year earlier compared with trade estimates that averaged 106.2% of a year earlier in a range from 100.8%-114.5%, according to a Reuters News Service survey of 10 analysts. Placements were larger than a year earlier for the fifth month in a row and were still the largest for July in four years.
USDA put the Aug. 1 feedlot inventory at 10.604 million head or 104.3% of a year earlier compared with trade estimates of the Aug. 1 feedlot inventory averaging 104.7% in a range from 103.5%-106.1%. The feedlot inventory was 439,000 head above a year earlier, which was about 41,000 less than the average of trade estimates indicated.
On the negative side, July feedlot marketings were pegged by USDA at 104.1% of a year earlier, near the low end of trade estimates that averaged 104.9% in a range from 104.0%-107.9%. However, marketings were above a year earlier for the twelfth month in a row and were the largest for July in three years.