Traders did a good job anticipating what USDA’s Cattle on Feed Report would show. Marketings came in just above expectations at 97% of year-ago, which pulled the Nov. 1 feedlot inventory just fractionally below expectations at 102% of year-ago. Placements were right in line with expectations at 96% of year-ago.
| Report details | USDA | Avg. Trade Estimate | Range |
| % of year-ago levels | |||
| On Feed | 102 | 102.2 | 101.6-103.2 |
| Placements | 96 | 96.0 | 93.8-98.4 |
| Marketings | 97 | 96.0 | 95.0-97.2 |
A weight breakdown of October placements showed a continuation of the ongoing trend with heavyweight placements up from year-ago, while the other three weight categories were down from last year’s levels. Feedlots placed 7.2% less lightweight calves (under 600 lbs.), 7.0% less 6-weights and 6.9% fewer 7-weight calves last month. Heavyweight placements (over 800 lbs.) were up 5.5% from year-ago.
Given the data is neutral, we expect little market reaction Monday. We’d like to hope attention will be focused on cash market fundamentals, but recent trade has been driven by what appears to be increased activity by high frequency traders.
