USDA Cattle on Feed Report Preview

OMAHA (DTN) -- Friday's Cattle on Feed report will again focus primarily on placement data. Given the widespread predictions of analyst's placement figures, there's a chance this report could be either bullish or bearish depending on which way placement numbers fall.

Unfortunately, I'm concerned analysts are underestimating placements as July saw a tremendous increase in sale receipts thanks to drought-related pressures, especially in the South with Texas leading the charge.

Now whether or not this report will shake the market remains unknown, but given how strong the market fundamentals sit in regard to limited market-ready supplies of fat cattle and tremendous packer demand, I believe the futures market could trade doggishly for one or two trading days but largely the complex will keep with its strong trend as feeder cattle are needed everywhere.

USDA will release its Aug. 1 Cattle on Feed at 2 p.m. CDT on Friday.

	USDA Actual	Average Estimate	Range
On Feed Aug. 1		100.8%	100.1-101.1%
Placed in July		98.8%	95.0-101.3%
Marketed in July		96.9%	96.0-102.1%

ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com

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