Cattle placements up 9% on the year
The USDA says placements of cattle into feedlots during August 2020 were 2.09 million head, 9% more than the same period in 2019. That’s at the upper end of pre-report estimates. Most of the placements weigh between 800 and 899 pounds, suggesting there is still a lot of cattle to by marketed by spring of 2021.
Marketings during August totaled 1.89 million head, a drop of 3 percent on the year. The total number of cattle on feed on September 1st was 11.4 million head, 4% above the year before, and at the upper end of pre-report estimates. This is the largest September 1 inventory since the report began in 1996.
The report is neutral to bearish for early 2021 prices.