Market News & Headlines >> Market Reaction to Cattle Report Short-Lived

The live cattle market appears to have shrugged off a bearish monthly Cattle-on-Feed report from USDA that showed September feedlot placements and the Oct. 1 feedlot inventory near the high end of trade expectations. After opening sharply lower in reaction to the USDA data, most live cattle contracts finished Monday trade showing small gains. 

USDA pegged the Oct. 1 feedlot inventory at 105.4% of a year earlier, compared with trade estimates that averaged 104.6% of a year earlier in a range from 103.4%-106.2%, according to a Reuters News Service survey of 10 analysts. In actual numbers, the feedlot inventory of 10.812 million head was 555,000 head above a year earlier and 81,000 above the average of trade estimates. The inventory was the largest for the date in five years. 

USDA reported September feedlot placements at 113.5% of a year earlier compared with pre-report estimates that averaged 108% in a range from 103.4%-116.0%. It was the seventh straight month that placements were above a year earlier. In actual numbers, September placements were 2.150 million head, 255,000 head above a year earlier and 104,000 above the average of trade estimates.  

September feedlot marketings came in at 102.9% of a year earlier in Friday’s report compared with trade estimates that averaged 102.6% of a year earlier in a range from 101.2%-103.1%. Marketings were above a year earlier for the fourteenth straight month. In actual numbers, marketings were 1.783 million head, 51,000 above a year earlier.