Bearish USDA Cattle On Feed Report: Up 8%

Dec 22, 2017

United States Cattle on Feed Up 8 Percent

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.5 million head on December 1, 2017. The inventory was 8 percent above December 1, 2016.

Placements in feedlots during November totaled 2.10 million head, 14 percent above 2016. Net placements were 2.03 million head. During November, placements of cattle and calves weighing less than 600 pounds were 610,000 head, 600-699 pounds were 545,000 head, 700-799 pounds were 455,000 head, 800-899 pounds were 294,000 head, 900-999 pounds were 75,000 head, and 1,000 pounds and greater were 120,000 head.

Marketings of fed cattle during November totaled 1.84 million head, 3 percent above 2016. Marketings were the highest for November since the series began in 1996.

Other disappearance totaled 71,000 head during November, 3 percent above 2016. Click the following link for the full USDA Report

http://usda.mannlib.cornell.edu/usda/current/CattOnFe/CattOnFe-12-22-2017.pdfhttp://usda.mannlib.cornell.edu/usda/current/CattOnFe/CattOnFe-12-22-2017.pdf

The USDA says there were more cattle on feed than expected at the start of December, with November placements much bigger than expected.

Placements jumped 14% to 2.099 million head, continuing the 2017 trend, with relatively low feed costs and higher feed cattle prices cancelling out concerns about drought or near drought conditions in some key U.S. feeding areas. Those cattle will be marketed from May through September of 2018.

By weight, placements of cattle weighing less than 600 pounds were 610,000 head, 600 to 699 pound placements were 545,000, and 700 to 799 pound placements were 455,000 head, while placements of cattle weighing 800 to 899 pounds were 294,000 head, 900 to 999 pound placements were 75,000 head, and placements of cattle weighing more than 1,000 pounds were 120,000 head.

November 2017 marketings were 3% above a year ago at 1.844 million head, in-line with analysts’ estimates, and the highest for the month since the series of reports started in 1996, as placements from earlier this year went to slaughter.

The total number of cattle on feed was up 8% at 11.516 million head.

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