On the surface, USDA’s Cattle on Feed numbers are friendly as feedlot inventories are 6% under year-ago, Placements last month were also 6% lighter than November 2011 and Marketings were just below year-ago. But compared to pre-report expectations, the data is slightly negative. Compared to Nov. 1, feedlot inventories are up 0.6%.
COF Report | USDA | Average | Range |
% of year-ago levels
| |||
On Feed | 94 | 93.4 | 92.8-93.8 |
Placements | 94 | 91.2 | 88.5-93.4 |
Marketings |
| 100.2 | 98.2-101.5 |
A weight breakdown of November placements shows: lightweights down 14%, 6-weights down 10%, 7-weights down 0.5% and heavyweights down 10.5%. Clearly, the available supply of calves to place into feedlots has been diminished.
While the report data may put some light pressure on nearby cattle futures Monday, tightening supply numbers will limit any pressure on deferred live cattle futures.
