Market News & Headlines >> U.S. Feedlot Inventory Seen Shrinking Further vs. Last Year
The latest USDA Cattle-on-Feed report, due out Friday afternoon is expected to show that the supply of cattle in U.S. feedlots continues to shrink relative to a year ago during October on lower feedlot placements and active feedlot marketings.
Trade estimates of the Nov. 1 feedlot inventory average 98.3% of a year earlier in a range from 97.9%-99.1% according to a survey of 11 livestock analysts. At the average of trade estimates, the Nov. 1 feedlot inventory would total 11.745 million head, down 203,000 head from a year earlier, but up seasonally from the Oct. 1 inventory of 11.449 million head.
Pre-report trade estimates of October feedlot placements average 96.5% of a year earlier in a range from 94.6%-100.0%. At the average of trade estimates, October feedlot placements would be the smallest in 10 years at 2.168 million head, down 78,000 head from last year. There is some uncertainty about the level of placements, with drought conditions in the Plains continuing to force cattle into feedlots.
Pre-report expectations for October feedlot marketings average 100.8% in a range from 100.5%-101.7%. At the average of trade expectations, October feedlot marketings would total 1.806 million head, up 15,000 from last year.