Cattle on Feed Report Preview   12/19  08:37

Dec. 1 Cattle on Feed Report Expected to Look Similar to 
Previous Months' Reports

By ShayLe Stewart
DTN Livestock Analyst

                      USDA Actual   Average Estimate*      Range

On Feed Dec. 1                           98.2%        97.3-99.0%
Placed in November                       90.9%        84.4-96.0%
Marketed in November                     88.5%        87.5-89.0%

* Estimates compiled by Dow Jones.

OMAHA (DTN) -- Regardless of what the data in Friday's Dec. 1 
USDA Cattle on Feed report shows, it's likely the market won't 
pay the report much attention, as it will be quickly forgotten 
in the hustle and bustle of Christmas. Even so, it's important 
that we track the data and comb through the report for any 
irregularities that could cause issues later down the road. 

Largely, Friday's COF report isn't expected to show anything out 
of the norm. In terms of the total number of cattle on feed, it 
may seem counterintuitive for the number of placements to be 
declining -- all while the total number of cattle on feed 
remains near year-ago levels. This is largely because the 
turnover rate in feedlots has declined, as cattle are spending 
more days on feed. And the sharp decline in feedlots likely 
stems from four logical points: 1) A large percentage of 
domestic calves were sold early to capitalize on the strong 
market; 2) The U.S. simply doesn't have as many feeder 
cattle/calves to market as compared to years past with the 
historically low cow herd; 3) With the border still closed to 
Mexico, placements in the Southern Plains have drastically 
declined; and 4) Prices were extremely strong through the month 
of October, which likely affected placements in November. 

All in all, I don't expect Friday's COF report will differ much 
from previous months, as the same market situation remains.

**

USDA will release its Dec. 1 Cattle on Feed report at 2 p.m. CST 
on Friday.

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