USDA Cattle on Feed Report Summary

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.8 million head on Nov. 1, 2019. The inventory was 1% above Nov. 1, 2018, USDA NASS reported on Friday.

Placements in feedlots during October totaled 2.48 million head, 10% above 2018. Net placements were 2.42 million head. During October, placements of cattle and calves weighing less than 600 pounds were 600,000 head, 600-699 pounds were 540,000 head, 700-799 pounds were 517,000 head, 800-899 pounds were 475,000 head, 900-999 pounds were 230,000 head, and 1,000 pounds and greater were 115,000 head.

Marketings of fed cattle during October totaled 1.88 million head, 1% below 2018.

Other disappearance totaled 59,000 head during October, 14% below 2018.

"November's Cattle on Feed report comes as a bit of a bullish surprise in a bear's world," said DTN Livestock Analyst ShayLe Stewart. "Given that analysts' projections for October placements ranged anywhere from 96.2% to 119.0% with an average estimate of 112.2%, actual placements only being up 10% comes as a shock. Now, that's not to say that 10% isn't a significant increase when compared to placements in 2018, because it most certainly is. The interesting facet of this is that it's on the lower side of the projected outcome."

"It's hard to call this report either bullish or bearish, because it's certainly both," Stewart said. "It's bearish in the sense that 10% more placements in October 2019 than of October 2018 is no small change to ignore, period. It's bullish in the sense that many projected this figure to be nearing an astonishing 20%. Regardless of how one chooses to view the report, it's safest to say this report is a bullish surprise in a bear's world."