USDA Cattle on Feed Estimates Down, Market Up

USDA’s November Cattle on Feed estimate was 11.9 million head, down slightly from October. Market leverage has pushed some renewed strength toward the cattle feeder market, with sales in the South up to $134 and dressed prices in the North up to $210 per cwt, $2 to $3 higher. Analysts are doubtful that cash will sustain that strength through the end of the month due to the Thanksgiving holiday and packers’ reduced schedules.

Meanwhile, December live cattle futures increased 37.5 cents Friday to $133.525, while February jumped 45 cents to $137.70, the highest closing price since September 1. January feeders fell 45 cents to $160.925. Placements remain steady at 2.19 million head and estimated cattle slaughter was 677,000 compared to just over 666,000 in 2020. Read more on USDA’s Cattle on Feed Report.