Tag Archives: Placements

The November cattle on feed report showed all cattle on feed in the US jumped 1% higher. Placements finally dropped in the monthly report after seeing several months of higher placements. However total cattle on feed was a strong number above analyst expectations. So the supply side of the market looks to be well funded with possible disruptions in the demand on the way.

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 12.0 million head on November 1, 2020. The inventory was 1 percent above November 1, 2019. This is the highest November 1 inventory since the series began in 1996.

Placements in feedlots during October totaled 2.19 million head, 11 percent below 2019. Net placements were 2.13 million head. During October, placements of cattle and calves weighing less than 600 pounds were 570,000 head, 600-699 pounds were 495,000 head, 700-799 pounds were 465,000 head, 800-899 pounds were 387,000 head, 900-999 pounds were 185,000 head, and 1,000 pounds and greater were 90,000 head.

Marketings of fed cattle during October totaled 1.87 million head, slightly below 2019.

Other disappearance totaled 63,000 head during October, 7 percent above 2019.

 

November Cattle on Feed November 2020 Est. Range of Estimates
On Feed 101.00% 101.80% 100.9%-102.6%
Placed 89.00% 90.80% 87.3%-95.5%
Marketed 100.00% 100.20% 98.5%-102.4%

 

Jerry Stowell with Country Futures calls the report friendly:


You can see the whole report here:

https://downloads.usda.library.cornell.edu/usda-esmis/files/m326m174z/r207vd272/08613d14n/cofd1120.pdf

The October cattle on feed report was not all that friendly to a market that has been down this week. Cattle on feed and cattle sent to market in the month of September were at or near analyst expectations. However cattle placed into feed yards in September were well above the average analyst estimate. The large placements are likely a factor of dry conditions seen across much of the country. With limited winter grass and wheat pasture available lots more cattle are coming to town and headed for feedlots.

According to the USDA cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head on October 1, 2020. The inventory was 4 percent above October 1, 2019. This is the highest October 1 inventory since the series began in 1996.

The inventory included 7.31 million steers and steer calves, up 6 percent from the previous year. This group accounted for 62 percent of the total inventory. Heifers and heifer calves accounted for 4.41 million head, down slightly from 2019.

Placements in feedlots during September totaled 2.23 million head, 6 percent above 2019. Net placements were 2.17 million head. During September, placements of cattle and calves weighing less than 600 pounds were 445,000 head, 600-699 pounds were 360,000 head, 700-799 pounds were 500,000 head, 800-899 pounds were 517,000 head, 900-999 pounds were 300,000 head, and 1,000 pounds and greater were 105,000 head.

Marketings of fed cattle during September totaled 1.85 million head, 6 percent above 2019. Other disappearance totaled 58,000 head during September, 2 percent below 2019.

October Cattle on Feed October 2020 Est. Range of Estimates
On Feed 104.00% 103.30% 102.7%-103.9%
Placed 106.00% 102.50% 98.9%-106.5%
Marketed 106.00% 105.90% 104.9%-106.7%

 

Jerry Stowell, Country Futures, breaks down the report and gives his thoughts on what this means for the cattle market:

 

Full USDA report here:

https://downloads.usda.library.cornell.edu/usda-esmis/files/m326m174z/q811m918x/8c97md838/cofd1020.pdf