Cattle On Feed Report Shows Second Smallest Placement Month In 19 Years- Tom Leffler Explains

The final Cattle on Feed report from the US Department of Agriculture for the calendar year 2014 was very much a "ho hum" affair, with all three key numbers in line with the numbers that the trade was anticipating. Tom Leffler of Leffler Commodities called the December cattle on feed numbers "neutral". As of December first, the US had 10.9 million head of cattle. Leffler said this was 4.6 percent below the five year average. Nebraska was up five percent for their cattle on feed. Kansas and Texas were both up two percent over a year ago. This was the second largest on feed number in the past 20 months, but its also the third smallest December number of the past 19 years.

Leffler anticipates that the report will have zero impact on futures trade on the Monday of Christmas holiday week- and say the real key is how the market follows the wild roller coaster ride of this past week as we pull into what is traditionally one of the slowest two week periods of the year.

Placements for November came in at 1.8 million head. That's four percent below a year ago.   Leffler said this was 7.2 percent lower than the five year average and the second smallest placements of the past 19 years. Kansas was down 12 percent, Texas down five percent and Nebraska was up two percent versus a year ago.

On the weight break down of placements, cattle less than 600 pounds were down 5.2 percent, 600 - 699 pounds was down 13 percent, 700 - 799 pounds was up 2.8 percent and cattle above 800 pounds was up 3.5 percent over a year ago.