Cattle On Feed Report 04/21 14:00
By John Harrington
DTN Livestock Analyst
USDA Actual Average Guess Range
Cattle On Feed:
On Feed April 1 100.0% 100.0% 99.0-100.5%
Placed in March 111.0% 107.5% 102.0-109.5%
Marketed in March 110.0% 109.5% 108.0-110.0%
The monthly feedlot inventory just released looks somewhat
negative thanks to larger-than-expected March placement
activity. Indeed, last month's in-movement (i.e., 2.102 million
head) represents the largest March placement since the data
series began in 1996.
Theoretically, this news is negative late-summer futures. Yet
August live is already trading close to $20 under spot cash.
How much of the bad news in already dialed into board discounts?
Positively, the marketing total also proved to be a bit larger
than expected, a fact that could help explain why feedlot appear
to be so current.
The report contained further evidence of cooling expansion
fever. While steers on feed were only up 2%, heifers at the bunk
line totaled 3.67 million head, up 5% from 2016.
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