Editor's Note: This article was originally posted at 2:03 p.m. CDT. It was reposted with additional information at 2:41 p.m. CDT.
OMAHA (DTN) -- Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.1 million head on Aug. 1, 2018, USDA reported Friday. The inventory was 5% above Aug. 1, 2017. This is the highest Aug. 1 inventory since the series began in 1996.
Placements in feedlots during July totaled 1.74 million head, 8% above 2017. Net placements were 1.68 million head. During July, placements of cattle and calves weighing less than 600 pounds were 410,000 head, 600-699 pounds were 290,000 head, 700-799 pounds were 415,000 head, 800-899 pounds were 367,000 head, 900-999 pounds were 175,000 head, and 1,000 pounds and greater were 85,000 head.
Marketings of fed cattle during July totaled 1.87 million head, 5% above 2017.
Other disappearance totaled 63,000 head during July, 31% above 2017.
"The monthly on-feed report just released looks negative, especially in terms of larger-than-expected placement activity in July (i.e., 8% greater than 2017, 4% larger than the three-year average, and the largest midsummer in-movement experienced by big lots since 2012)," said DTN Livestock Analyst John Harrington. "Aggressive movement off areas with poor pasture conditions include Oklahoma placement (up 10%), Kansas placement (up 8%), and Colorado placement (up 22%)."
"Deferred live cattle futures should open at least 50-100 lower when trade resumes on Monday," Harrington said. "Having said that, triple-digit loses suffered right before the release of the bearish placement news could work to take a good deal of the sting out of the data by the time traders finish mulling things over through the weekend."
To view the full Cattle on Feed report, visit https://www.nass.usda.gov/…
|USDA Actual||Average Guess||Range|
|Cattle on Feed:|
|On Feed August 1||105.0%||104.5%||103.5-106.0%|
|Placed in July||108.0%||106.5%||100.5-114.5%|
|Marketed in July||105.0%||105.0%||104.5-106.0%|
John Harrington can be reached at firstname.lastname@example.org
Follow him on Twitter @feelofthemarket
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