Market News & Headlines >> Feedlot Placements Seen Slowing
USDA is expected to report that placements of cattle in U.S. feedlots fell below a year earlier during August for the first time in 6 months when it releases its monthly Cattle-on-Feed report on Friday afternoon.
Tighter feeder cattle supplies after five months of larger placements may have limited August placements along with weak live cattle prices.
Trade estimates of August placements average 97.1% of a year earlier in a range from 88.3%-104.3%, according to a Reuters News Service survey of 10 livestock analysts. If placements come in at the average of trade estimates, they would total 1.825 million head, 54,000 below a year earlier.
Pre-report expectation for the Sept. 1 feedlot inventory average 102.7% of a year earlier in a range from 101.1%-104.0%. At the average of trade estimates, the supply of cattle on feed as of Sept. 1 would be 10.409 million head, 274,000 head larger than a year earlier and the largest for the date in five years.
Feedlot marketings in August were likely larger than a year earlier for the thirteenth consecutive month. Pre-report estimates of August marketings average 105.8% in a range from 104.3%-107.1%. At the average of trade expectations, August marketings would total 1.977 million head, 109,000 larger than a year earlier and the largest for the month in six years.