More Cattle In Feedlots Than Expected In November

Most private cattle trade analysts expected the USDA's most recent cattle on feed report to show November cattle placements in feedlots to be only about 1% higher year over year.  What they got was a placement number 5% higher than a year ago just under 2.1 million head leaving cattle feedlot inventories on December 1^st, 2% above a year ago.

USDA Livestock analyst, Shayle Shagam, said this is definitely a bearish report.  So, what brought on such large placements though?  Shagam said an awful October may have delayed movement of some cattle to feedlots until November.

“Quite possibly there was some pasture development in terms of winter pastures in the southern plains which aren't fully established and you couldn't turn the cattle out yet so some of those cattle went in to feedlots as well.”

Meaning there will be a fair amount of beef coming in to the chain as we look towards the middle part of 2020.  Which Shagam said will put pressure on cattle and beef prices.

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