The monthly Cattle on Feed report by the USDA is expected to show cattle producers have fewer cattle, with Friday’s totals forecasted to report smaller numbers for 12 consecutive months.
Higher cash prices over the past five weeks are also indicative of fewer cattle available. Tight supplies have kept feedlots bidding at least steady with the previous week, if not higher and lower corn values ease input costs for feedlot operators.
The USDA’s Cattle on Feed report measures feedlot inventories as of August 1.
An estimate released by Allendale, Inc. anticipates 1.8 percent fewer cattle on feed in July compared to the previous year. That percent decrease is smaller than the report released July 1, which showed a decrease of 3.2 percent with a total of 10.4 million head in U.S. feedlots with capacity of 1,000 or more head.
Placements and marketings in the August 1 total are expected higher. Placements are forecasted to increase by 11.6 percent over the previous year while marketings are expected to be 3.8 percent higher. Both numbers were lower in the previous report.
The July Cattle on Feed report can be found here. Check Drovers/CattleNetwork Friday at 2 p.m. for the official August USDA report.