031232 Cattle on Feed Up Four%December 19, 2003The Cattle on Feed report Friday afternoon was a bit positive relative to market expectations. The feedlot inventory is up 4% from last year, compared to 3% last month, but it is a little below pre-report estimates for a 5% increase. November marketings were down 11% from last year, compared an expected decline of about 15%. Placements were down 3% compared to expectations for little change from last year. Doane economists say the report will be supportive for futures Monday simply because it wasn't nearly as negative as anticipated. However, the data do not change the fact that fed cattle supplies will be increasing into the first quarter. Cash cattle prices have declined about $10 since early December. This report may help slow the decline but the major market trend is likely to remain lower into early 2004 barring major weather disruptions.
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