Cattle supplies remain squeaky-tight and will continue that way.
September feedlot placements showed a larger-than-normal seasonal uptick from August. On-feed placements showed the first year-on-year rise since February. Still, September's 2.007 million placements were 314,000 below the 2008-12 average for September.
Despite higher placements, the Oct. 1 feedlot inventory was down 1.5% from a year earlier. It was still 6.3% smaller than the 2009-2013 average. October marked the fifth time in the last five years that cattle on feed were the lowest for that calendar month.
Steve Meyer of Paragon Economics in Adel, IA, says marketing patterns could create some price pressure on fed cattle in late winter and early spring.
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