US Cattle on Feed Up 1 PercentMon, 22 Dec 2014 10:25:13 CST
After a very active trading week for live and feeder cattle, a very quiet cattle on feed report was released on Friday. Reaction to the latest US Department of Agriculture report looks to be limited. Tom Leffler of Leffler Commodities called the December cattle on feed numbers "neutral". As of December first, the US had 10.9 million head of cattle. Leffler said this was 4.6 percent below the five year average. Nebraska was up five percent for their cattle on feed. Kansas and Texas were both up two percent over a year ago. This was the second largest on feed number in the past 20 months, but its also the third smallest December number of the past 19 years.
Radio Oklahoma Network's Leslie Smith interviewed Leffler after the report came out Friday afternoon. Click or tap on the LISTENBAR below to listen to the full interview.
Placements for November came in at 1.8 million head. That's four percent below a year ago. Leffler said this was 7.2 percent lower than the five year average and the second smallest placements of the past 19 years. Kansas was down 12 percent, Texas down five percent and Nebraska was up two percent versus a year ago.
On the weight break down of placements, cattle less than 600 pounds were down 5.2 percent, 600 - 699 pounds was down 13 percent, 700 - 799 pounds was up 2.8 percent and cattle above 800 pounds was up 3.5 percent over a year ago.
November marketings totaled 1.475 million head. That's down 11 percent from 2013 and down 14 percent over the five year average. November marketings were the lowest since the series began in 1996. Kansas marketings were down 17 percent. Texas and Nebraska were both down 10 percent over a year ago.
Leffler looks for this report to have little effect on the market on Monday morning. He said the biggest thing to watch is how this market reacts after a wild week, will the market carry through to the up side after the previous two days of trading and closing with triple digit gains or will the market go lower after having several sessions of extreme downside in the cattle complex.
On Monday, USDA will also release the monthly cold storage report. Leffler said overall trading between now and the end of the year will be very quiet.
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