USDA Oct. 1 Cattle on Feed Report

25 Oct 2024

By DTN Staff

This article was originally published at 2:03 p.m. CDT on Friday, Oct. 25. It was last updated with additional information at 2:41 p.m. CDT on Friday, Oct. 25.

OMAHA (DTN) -- Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.6 million head on Oct. 1, 2024. The inventory was slightly below Oct. 1, 2023, USDA NASS reported on Friday.

The inventory included 7.00 million steers and steer calves, up 1% from the previous year. This group accounted for 60% of the total inventory. Heifers and heifer calves accounted for 4.60 million head, down 1% from 2023.

Placements in feedlots during September totaled 2.16 million head, 2% below 2023. Net placements were 2.10 million head. During September, placements of cattle and calves weighing less than 600 pounds were 430,000 head, 600-699 pounds were 330,000 head, 700-799 pounds were 465,000 head, 800-899 pounds were 526,000 head, 900-999 pounds were 305,000 head, and 1,000 pounds and greater were 100,000 head.

Marketings of fed cattle during September totaled 1.70 million head, 2% above 2023.

Other disappearance totaled 56,000 head during September, 2% below 2023.

DTN ANALYSIS

"Friday's Oct. 1 Cattle on Feed report will likely be viewed in one of two ways," said DTN Livestock Analyst ShayLe Stewart. "There's a chance that traders will find the report slightly bearish, solely because the report's actual data came in higher than analysts' estimates. However, I hope traders will opt to dig deeper into the report and find it to be neutral, as, overall, that's what the data shows.

"Regarding the placement data, I don't find it alarming that placements during September totaled 2,156,000 head, as, from a ground-level perspective, it makes logical sense. Drought conditions have spread across the vast majority of the U.S., and Mexican feeder cattle imports thus far through 2024 have totaled 1,074,937 head, which is up 16.6% compared to a year ago. Not to mention, the fall feeder cattle run is fully underway, and a large percentage of the calves and feeders that are being marketed through sale barns, video auctions and bought by country buyers are working their way into feedlots as, once again, drought pressures are limiting some fall grazing.

"I don't believe the market will be fixated on this report for long on Monday, as, thankfully, there are enough supportive market fundamentals at play that are helping drive the complex higher (fed cash cattle market, beef demand, slight uptick in throughput)."

DTN subscribers can view the full Cattle on Feed reports in the Livestock Archives folder under the Markets menu. The report is also available at https://www.nass.usda.gov/….