USDA’s monthly Cattle on Feed report showed some surprises today. (See the report.)
Three market experts decipher the numbers and provide advice.
A bearish Cattle on Feed report showed all categories above expectations, says Johnston. “While feedlot inventories are higher than expected, they are still historically tight.”
“The futures market appears to be reclaimed by the commodity pension fund bulls," Kay says. He says to watch Monday’s cattle prices to know for sure.
USDA’s September Cattle on Feed report had some surprises in it, says Plain. “The trade was looking for placements to be down a bit from a year ago, but USDA said we placed 7.1% more cattle on feed during the month of August then we did a year ago.”