Market News & Headlines >> U.S. Feedlot Inventory Seen Below Last Year
USDA is expected to report that the supply of cattle in U.S. feedlots was below a year earlier for the first time nearly three years as of Sept. 1, when it releases its monthly Cattle-on-Feed report on Friday.
Trade estimates of the Sept. 1 U.S. feedlot inventory average 99.3% of a year earlier in a range from 98.5%-100.0%, according to a survey of 10 analysts by Reuters News Service. If the feedlot inventory comes in below a year earlier, it would be the first year-over-year drop in the on-feed supply since December 2016.
Cattle-on-feed supplies are still expected to be historically large. At the average of trade estimates, the Sept. 1 feedlot inventory would total 11.050 million head, 75,000 below the record-large inventory of a year earlier, but still the second largest on record going back to 1996, and well above the five-year average.
Trade expectations for August feedlot placements average 93.7% of a year earlier in a range from 88.9%-97.6%, while expectations for August feedlot marketings average 98.3% of a year earlier in a range from 97.6%-98.8%.
If August feedlot placements come in at the average of trade expectations, they would total 1.940 million head, 130,000 head below a year earlier, but still 93,000 head above the five-year average for the month.
August feedlot marketings are only expected to be down versus last year because August contained one less marketing day this year. At the average of trade expectations, August marketings would total 1.950 million head, 33,000 below a year earlier, but still 128,000 head above the five-year average for the month.