Cattle on Feed Report Preview 01/24 09:02

Wide Range of Placement Estimates Ahead of Jan. 1 Cattle on Feed
Report

By ShayLe Stewart
DTN Livestock Analyst

USDA Actual Average Estimate Range

On Feed Jan. 1 99.8% 99.3-100.8%
Placed in December 101.8% 98.8-107.1%
Marketed in December 101.3% 100.9-102.0%

OMAHA (DTN) -- Friday's Jan. 1 USDA Cattle on Feed report is
likely going to be one that demands our attention, as the
placement estimates range from 98.8 to 107.1% compared to a year
ago.

There are really two arguments to be made as to why the data
ranges so drastically. On the one hand, one could argue that
with the historically low cow herd and with prices so strong
earlier this year, placements happened earlier than normal,
which justifies the slight year-over-year decline. But while
that is true, it's also true that feeder cattle prices were
extremely high in December, which encouraged producers to market
any calves/feeders that they had available to sell, which could
contribute to the increase of placements when compared to a year
ago.

So long as the placement data doesn't come in on the upper end
of pre-report estimates, Friday's Cattle on Feed report will
likely be found to be neutral.

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

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