Latest Fed Cattle Report Suggests End of Buildup

(WASHINGTON, DC) USDA surprised analysts on Friday with the September Cattle on Feed report. Though the on feed number was in-line with trader expectations, the placements number was three percent below the average pre-report guess. The inventory as of September 1st totaled 11 million head, which was one percent lower than the same time last year. Placements during the month of August hit 1.88 million head which was nine percent lower than last year and marketings of fed cattle fell two percent from 2018, finishing the month of August at 1.95 million head. Cattle on feed fell for the first time in several years and one analyst says it’s both a sign of financial stress in the industry and the end of the acceleration in the build upcycle of the nation’s cattle herd. He also added that all eyes are on the next two reports (September and October placements) for signs of bunching. October is seasonally and normally the largest placement month of the year. Texas remains the largest state for beef cattle on feed with 24.9 percent of the nation’s herd. Kansas has moved into second with 21.3 percent on feed and Nebraska slips to third with 19.7 percent of the total.