News

Cattle placements top most projections

The USDA says more cattle than expected were placed on feed in August.

Placements were up 3% on the year at 1.928 million head, the average estimate was for a 2.5% decline, with pasture conditions worsening because of dry conditions in many key U.S. feeding areas. That’s even more impressive when taking into account the 15% jump from August 2015 to August 2016 as the industry re-expanded following widespread drought. Cattle placed on feed in August will head to market between February and June 2018.

By weight, placements of cattle weighing less than 600 pounds were 360,000 head, the 600 to 699 pound category had placements of 285,000 head, and 700 to 799 pound placements were 418,000 head, while placements for 800 to 899 pound cattle were 485,000 head, 900 to 999 pound placements were 270,000 head, and placements of cattle weighing more than 1,000 pounds were 110,000 head.

Marketings were up 6% at 1.979 million head, continuing to be aggressive despite losses on outgoing cattle.

The total number of cattle on feed as of September 1st was 4% above a year ago at 10.504 million head, also more than what many analysts had been expecting.

The numbers look bearish for futures trade.