Market News & Headlines >> Feedlot Inventory Smaller Than Expected; Still Record Large
Friday’s USDA’s monthly Cattle-on-Feed report was neutral to friendly relative to trade expectations, but still indicated a historically large supply of cattle in feedlots.
USDA pegged the Nov. 1 feedlot inventory at 101.3% of a year earlier, below the average of trade estimates at 101.8%, however, at 11.973 million head, the inventory was still the largest ever for Nov. 1 in the current USDA data series going back to 1996.
As expected, USDA reported a drop off in feedlot placements after four straight month of year-over-year increases. October feedlot placements of 2.192 million head were 89.0% of a year earlier, were slightly below the average of trade estimates at 90.8% and were the smallest in 8 years.
October feedlot marketings of 1.873 million head or 99.9% of a year earlier were just under the average trade estimate of 100.2% and were the lowest for the month in 3 years.
October feedlot placements were lower than a year earlier in all weight categories, with placements in the 800-899 pound weight class down the most at only 84.1% of a year earlier.