USDA Cattle on Feed Report Preview

OMAHA (DTN) -- If Friday's USDA Cattle on Feed report unveils a number set similar to what analysts estimate, then the report will favor the cattle market and its bullish long-term nature.

It's a relief to see placement estimates scaled back to 94.9% of a year ago given that the last two Cattle on Feed reports have presented placement numbers that were greater than a year ago. With the U.S. beef cow herd at a 52-year low, it's hard to believe that placements can be that much higher. But with the market presenting strong prices and feeder cattle imports from Mexico up 41% compared to a year ago, feeder cattle have been moving as opposed to following the yearly marketing norm.

Read more about the nation's feeder cattle imports from Mexico here: https://www.dtnpf.com/….

In conclusion, if Friday's report can display a number outlook like what analysts have forecast, then the market could gain some momentum. But there is still a chance that placements could be slightly higher than what analysts believe, simply because of imports.

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		98.3%	96.5-99.1%
Placed in July		94.9%	90.4-98.6%
Marketed in July		94.8%	94.6-95.4%

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

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