Aug 21, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Cattle on Feed Report Bearish

January 21, 2011
 
 

Following are report highlights: All categories in USDA's monthly audit of feedlot activity came in on the bearish side of the average pre-report trade guesses. The most bearish number was Placements. While traders expected Placements to be up sharply, the average trade guess was still 2.3 percentage points above USDA estimate. While the year-on-year comparison for Placements may be skewed a little by last year's slow movement into feedlots during December, the Dec. 2010 Placements figure is still 6.4% above the three-year average.

Looking at the weight breakdown of calves that entered feedlots last month, feedlot managers found more of the cattle they were looking for. Heavyweight calf placements (800 lbs.-plus) surged 28.8% from year earlier; 7-weight placements were up 9.7%; 6-weight placements were up 17.9%; and lightweight (under 600 lbs.) were up 11.6%.

That movement of calves into feedlots should erase concerns over a supply "hole" for the first quarter. The report data is most bearish for deferred live cattle futures. If the report reaction is strong enough Monday, it could put a major top in these contracts. .

See Comments

RELATED TOPICS: Beef, Marketing, Cattle

 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions