Market News & Headlines >> Feedlot Inventory Up 6.3% From Last Year

Friday afternoon’s monthly USDA Cattle-on-Feed report appeared to hold neutral to bearish news for the live cattle market as it pegged October feedlot placements and the Nov. 1 feedlot inventory toward the high end of trade expectations. 

USDA pegged the Nov. 1 feedlot inventory at 106.3% of a year earlier compared with trade estimates that averaged 105.7% in a range from 105.0%-107.0%, according to a survey of 10 analysts by Reuters News Service. The inventory was the largest for the date in five years.  In actual numbers, the Nov. 1 feedlot inventory was 11.332 million head, 667,000 head larger than a year earlier. 

Placements of cattle in feedlots during October were 110.3% of a year earlier, according to USDA, compared with trade estimates that averaged 107.7% in a range from 103.6%-113.1%. It was the eighth consecutive month that feedlot placements were larger than a year earlier.  Placements were the largest for the month of October in 6 years. In actual numbers, October feedlot placements were 2.393 million head, 222,000 larger than a year earlier. 

USDA put October feedlot marketings at 105.6% compared with trade estimates that averaged 105.4% in a range from 105.0%-106.1%. Marketings came in above a year earlier for the fifteenth straight month and were the largest for October in four years. In actual numbers, October marketings were 1.801 million head, 94,000 head larger than a year earlier.