December cattle on feed inched higher

Larger cattle on feed totals with record weights could register bearish tone for market trade.

 

The U.S. Dept. of Agriculture’s National Agricultural Statistics Service (NASS) reported a total of 10.8 million head of cattle were in U.S. feedlots with capacity of 1,000 head or more on Dec. 1, 2014 – close to market traders’ expectations prior to the report (table).

Looking at individual states, Texas, Kansas and Nebraska recorded larger cattle on feed totals in December while Iowa on-feed numbers remain unchanged.  In addition, a decline of cattle on feed in South Dakota and Minnesota was reported.

November marketings of fed cattle reached the lowest level at 1.475 million head since the report began in 1996. Market participants are reporting this number is bearish

Placements in feedlots during November was also down at 1.792 million head, 4% below a year ago.  During November, placements of cattle and calves weighing less than 600 pounds were 550,000, 600-699 pounds were 440,000, 700-799 pounds were 362,000 and 800 pounds and greater were 440,000.

In the current situation, the U.S. has larger cattle on feed totals with record heavy weights.

Feedlot inventory

Million head

 

 

 

USDA

LMIC Pre-Report

Category

2013

2014

2014 as % of 2013

2014 as % of 2013

Dec.  1 Inventory

10.724

10.876

101

100.6

Oct.  marketings

1.660

1.475

89

91.2

Oct.  placements

1.867

1.792

96

93.5

Nov.  1 Inventory

10.585

10.633

100

 

Source: USDA NASS and Livestock Marketing Information Center

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