Market Expecting Higher July Placements in Aug. 1 Cattle on Feed Report
It's likely that Friday's USDA Cattle on Feed report will be viewed as bearish, as traders will find the placement data to be overwhelming, according to DTN Livestock Analyst ShayLe Stewart.
OMAHA (DTN) — Friday’s Cattle on Feed report isn’t likely going to help the cattle market’s current doggish state, as on-feed numbers are expected to remain steady and placements are forecast to be anywhere from 1% to 5% higher than a year ago.
Getting your head wrapped around the placement data for this report is a job and a half, as there are a lot of moving factors to consider. First, it’s critical to remember that last year, August placements were down 8% on the Cattle on Feed report to total only 1.62 million head. And, secondly, feedlots were highly incentivized to place cattle in July as corn prices were cheapening and fed cash cattle prices were strong. Needless to say, it’s likely that Friday’s report will be viewed as bearish, as traders will find the placement data to be overwhelming.
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USDA will release its Aug. 1 Cattle on Feed report at 2 p.m. CDT on Friday.
| USDA Actual | Average Estimate | Range | |
| On Feed Aug. 1 | 100.0% | 99.8-100.5% | |
| Placed in July | 104.2% | 101.9-105.9% | |
| Marketed in July | 108.2% | 107.8-109.0% |
ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com