United States Cattle on Feed Up Two Percent Over 2014, Tom Leffler Analyzes Latest ReportFri, 23 Oct 2015 15:54:37 CDT
The latest cattle on feed report looks to have little bearing on the market. That's according to Market Analyst Tom Leffler of Leffler Commodities. On Friday, the U.S. Department of Agriculture released the latest figures, as of October first. Leffler said the on-feed and marketing numbers were in line with trade expectations, while placements were two percent larger than expected. The nation has 10.2 million head on feed. The inventory was two percent above October 1, 2014. Leffler said this was 3.9 percent below the five year average.
"This is the largest on feed number of the past three years and today's on feed number is the eleventh time in the past 12 months of year over year increases," Leffler said.
The inventory included 6.93 million steers and steer calves, up seven percent from the previous year. This group accounted for 68 percent of the total inventory. Heifers and heifer calves accounted for 3.29 million head, down seven percent from 2014. October 1, 2015 heifers and heifer calves inventory is the lowest percent of total October inventory since the series began in 1996.
Placements in feedlots during September totaled 1.93 million head, four percent below 2014. Net placements were 1.87 million head. Placements are the lowest for September since the series began in 1996. Leffler said this was only the second time in September when placements were below two million head. Even at this low level, he said this was the largest monthly placement number of the past ten months.
During September, placements of cattle and calves weighing less than 600 pounds were 395,000 head, 600-699 pounds were 290,000 head, 700-799 pounds were 416,000 head, and 800 pounds and greater were 830,000 head. Leffler said the heavy weight category was up 7.8 percent and this category has been larger over the previous year for now 12 of the past 13 months.
Marketings of fed cattle during September totaled 1.64 million head, two percent below 2014. Other disappearance totaled 57,000 head during September, 12 percent below 2014.
On Thursday, USDA released the monthly cold storage report. USDA reported the total red meat, beef and pork frozen stocks were at record levels for September. Total pounds of beef in freezers were up six percent from the previous month and up 31 percent from last year. Pork stocks were up 19 percent from a year ago. Leffer said this continues to show there is plenty of protein in storage to work through.
Radio Oklahoma Network's Leslie Smith interviewed Tom Leffler of Leffler Commodities for his analysis. Click or tap on the LISTEN BAR below to listen to the full interview.
Click here to read the full cattle on feed report.
Click here to read the full cold storage report.
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