Slight Decrease in Fed Cattle, Larger Marketing Increase

WASHINGTON, DC – USDA’s final monthly Cattle on Feed Report dropped Thursday afternoon in front of a three day holiday weekend, leaving traders to wonder how the report will affect markets once they reopen.

For the actual “on feed” number which represents the number of cattle and calves in feedlots during the month of November, USDA projected a slight decrease (11.95 million head) as of December 1st when compared to one year earlier (11.97 million head). The number is still equal, statistically, to 2020 and within most trade estimates of 100 percent.

Placements on the other hand exceeded the averege trade estimateas the 1,97 million new head of cattle that moved into the feedlot is a 4 percent year over year increase, but still within the greater range of 96.4 to 106.7 percent of the 2021 crop.

Traders also expected USDA to announce a 4.3 to 5 percent increase in marketings of fed cattle during November, but USDA hit the upper limit of the range with a 5 percent increase equal to 1.87 million head. This year did include one more slaighter day than 2020.

Once again, Texas reigns supreme in fed beef cattle with 2.88 million head followed by Nebraska (2.58 million), Kansas (2.48 million), Colorado (1.14 million) and Iowa (610 thousand).

USDA also reported other disappearance totaled 61,000 head during November, unchanged from 2020.
(SOURCE: All Ag News)