Cattle on Feed Report

Cattle on Feed Report

Friday’s Cattle on Feed Report had surprisingly low cattle numbers and may be a bit bullish for the cattle market. After the break, we learn more details on the latest report, I’m KayDee Gilkey with Open Range.

USDA livestock analyst Shayle Shagam shares USDA’s Cattle on Feed Report numbers.

Shagam: “On October first, there were just under 11 million head of cattle on feed which was about 3 percent below a year ago. During September producers placed 2 million head of cattle on feed, which was 19 percent below a year ago. About 1.6 million head of cattle were marketed during September which was about 12 percent below a year ago. These are very low numbers. In fact the placement number was the lowest September number since the series began in 1996.”

Shagam describes why only 2 million head of cattle were placed on feed last month -- which doesn’t really surprise anyone in the cattle business.

Shagam: “We are looking at a smaller pool of animals available for feed. A lot of this is the impact of that smaller pool. As the fall approaches and people are hopeful for prospects for winter grazing there is probably some heifer retention going on.”

Ranchers will be in good position with retained heifers if they can find reasonable priced feed for this winter.

Shagam says these feedlot numbers were lower than most outside anyalyst had expected which from the standpoint of futures market could be bullish.

I’m KayDee Gilkey with Open Range on the Ag Information Network.