Favorable Numbers in Bullish Cattle on Feed Report Suggests Continued Currency in Beef Markets

 

The USDA released its Cattle on Feed report for the November 1, 2018 on Wednesday morning. Radio Oklahoma Ag Network Farm Director Ron Hays reached out to OSU Extension Livestock Market Economist Dr. Derrell Peel for his reaction to the numbers in this month’s report. You can listen to their complete conversation by clicking or tapping the LISTEN BAR below at the bottom of the page.

 

“I think the market will react favorably to the November Cattle on Feed report,” Peel said. “Placements in October came in lower than expected and marketings came in a tiny bit higher than expected. It is bullish on sort of both ends in terms of the pre-report expectations. So, the market is going to like this. We’re holding the feedlot inventory in check so short-run reaction here should be very positive to this report.”

 

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head on November 1, 2018. The inventory was 3 percent above November 1, 2017.

 

Placements in feedlots during October totaled 2.25 million head, 6 percent below 2017. Net placements were 2.18 million head. During October, placements of cattle and calves weighing less than 600 pounds were 640,000 head, 600-699 pounds were 525,000 head, 700-799 pounds were 450,000 head, 800-899 pounds were 363,000 head, 900-999 pounds were 180,000 head, and 1,000 pounds and greater were 90,000 head.