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Heavyweight feedlot placements increase again

Heavyweight feedlot placements increase again
September placements of feeder cattle weighing 800 pounds or more increased 7.8% year over year, representing 43% of placements, according to the monthly Cattle on Feed report. Total placements of 1.93 million head were 4% less year over year.

Helped by positive forage conditions and the likely reluctance of producers to sell yearlings as prices crumbled, cattle placed on feed in September weighing 800 pounds or more increased 7.8% year over year, representing 43% of placements. That continues a trend that began at the beginning of this year.

For further perspective, according to Friday’s monthly Cattle on Feed report, placements (1.93 million head) in September were 4% less year over year. Heading into the report, average analyst estimates suggested a decline of 6.1%.

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Depending on how feedlots ultimately handle these heavyweight placements, they have the opportunity to keep kicking the proverbial can down the road, creating more of the over-heavy cattle that fueled the latest price decline.

Total on-feed inventory October 1 (10.2 million head) was 2% more than a year earlier. Average analyst estimates were for an increase of 1.8%.

Marketings in September (1.64 million head) were 2% fewer year over year. Average survey expectations were for a decline of 2.3%.


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