Cattle on Feed Preview   09/17  15:27

Higher On-Feed Totals Overshadow Lower Placements

By ShayLe Stewart
DTN Livestock Analyst

                      USDA Actual   Average Estimate       Range
On Feed Sept. 1                         101.8%      101.4-102.3%
Placed in August                         97.3%        93.9-98.4%
Marketed in August                       96.2%        95.3-96.4%

OMAHA (DTN) -- Friday's Sept. 1 USDA Cattle on Feed report is 
expected to be the same song and dance, reflecting a pattern the 
market has seen over the last several months: higher on-feed 
totals than a year ago, while both placements and marketings are 
lower.

While some in the industry may look at the placement data and 
say, "If placements are lower than a year ago, then that's a 
bullish report," I won't be repeating that bullish refrain.

Long term, an ever-growing number of cattle on feed is not 
bullish for the industry. It's burdensome and will create supply 
pressures down the road, something cattle producers and feedlot 
managers need to be soberly aware of.

USDA will release its Sept. 1 Cattle on Feed report at 2 p.m. 
CDT on Friday.

ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com