Cattle on Feed Report: About as Expected

June 18, 2010 07:20 AM
 

Cattle on Feed Report highlights: The combination of heavy Placements and lighter Marketings during May pushed the June 1 On Feed number 1% above year-ago. That's the first time since last November feedlot inventories have come in above year-ago.

As would be expected given the 23% increase in the overall placements pace, all weight categories were up sharply from last year. Lightweight placements increased 12.7%; 6-weight placements surged 32.8%; 7-weight placements increased 24.0%; and heavyweight placements rose 25.7% from year-ago levels. It's important to note that May 2009 placements were unusually light. For better comparison, May placements this year were up just 2.8% from the five-year average.

Traders did a very good job anticipating the report data, as the figures were right in line with the average pre-report trade guesses. As a result, the market impact should be limited to spreading, with the bulk of the
pressure on deferred futures. Most of the focus next week will remain on the boxed beef and cash cattle markets.

COF Report

USDA

Average

Range

% of year-ago levels

On Feed

101%

100.8%

98.7-103.3%

Placements

123%

122.3%

115.2-137.1%

Marketings

96%

96.8%

94.5-100.5%



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