Cattle on Feed Report     10/23  14:06

Oct. 1 Cattle on Feed Up 4% 

By DTN Staff
                      USDA Actual   Average Estimate       Range
On Feed Oct. 1            104%          103.3%      102.7-103.9%
Placed in Sept.           106%          102.5%       98.9-106.5%
Marketed in Sept.         106%          105.9%      104.9-106.7%

OMAHA (DTN) -- Cattle and calves on feed for the slaughter 
market in the United States for feedlots with capacity of 1,000 
or more head totaled 11.7 million head on Oct. 1, 2020. The 
inventory was 4% above Oct. 1, 2019. This is the highest Oct. 1 
inventory since the series began in 1996, USDA reported on 
Friday.
 
The inventory included 7.31 million steers and steer calves, up 
6% from the previous year. This group accounted for 62% of the 
total inventory. Heifers and heifer calves accounted for 4.41 
million head, down slightly from 2019.

Placements in feedlots during September totaled 2.23 million 
head, 6% above 2019. Net placements were 2.17 million head. 
During September, placements of cattle and calves weighing less 
than 600 pounds were 445,000 head, 600-699 pounds were 360,000 
head, 700-799 pounds were 500,000 head, 800-899 pounds were 
517,000 head, 900-999 pounds were 300,000 head, and 1,000 pounds 
and greater were 105,000 head.

Marketings of fed cattle during September totaled 1.85 million 
head, 6% above 2019.

Other disappearance totaled 58,000 head during September, 2% 
below 2019.

DTN ANALYSIS

"The number of cattle on feed as of Oct. 1, at 11.7 million 
head, was up 323,000 head from Sept. 1 and up 429,000 head from 
a year ago," said DTN Analyst Rick Kment. "Current cattle on 
feed numbers continue to follow seasonal fall trends and are the 
highest since March 1, 2020. The Oct. 1 on-feed number came in 
slightly higher than the average pre-report estimate of 103.3% 
of a year ago."

"Increased placement levels are not uncommon due to the seasonal 
run of feeder cattle sales moving to feedyards, but the 6% 
increase over a year ago is well above the average pre-report 
estimate of 2.5%.

"Both total cattle on feed and placement numbers are likely to 
spark a bearish tone to the complex once traders return to the 
market Monday morning."

**

DTN subscribers can view the full Cattle on Feed reports in the 
Livestock Archives folder under the Markets menu. The report is 
also available at https://www.nass.usda.gov/.