Cattle on Feed supply as of September 30th was 100% of last year versus the average trade estimate of 99.7%, with a range of 99.1% to 100.1%. Placements for the month of September were 98.1% versus trade expectations of 95.9% and a range of 94.2% to 99%. Marketings for September were 102% of last year, compared with the average estimate of 101.7% and a range of 98.1% to 103.4%.

On feed and marketings were on expectations and considered neutral. Placements were the important number in the report. September last year showed inordinately high numbers of cattle placed. Today's placements at 98% are 4% below the 5-year average for this month. But after the strong recent rally, the placement number could add some minor bearish pressure for cattle futures on Monday. US Plains pasture conditions have been very tough, fostering ideas additional cattle have and will be moved to feedlots. However, rain chances will be improving according to the latest 6-14 day outlook calling for above normal precipitation for the south central Plains. Until cash breaks, futures prices are likely to remain elevated. If the ongoing rally continues early next week, a test of the contract highs at 191.62 on December live cattle is possible. Key support is 187.25.

This file contains the monthly total number of cattle and calves on feed, placements, marketings, and other disappearances; by class and feedlot capacity for selected states; number of feedlots and fed cattle marketings by size groups for selected states. Data is organized by state and by U.S.

This report offers a timely update on the current makeup of the beef cattle herd. It is probably the most-watched of the USDA reports for the cattle markets and can be a market-moving event if it contains a surprise. The marketings number provides an indicator of recent demand and has the ability to affect the price of nearby futures contracts. The placements number offers insight on the future supply of market ready cattle and has a tendency to affect the deferred contracts. Cattle are placed on feed for anywhere from 90 to 180 days, so a large placements number in June would project large market-ready supply in the fall. Both the placements and the marketings numbers inform the on feed number, which is a measure of current supply. The report offers state-by-state breakdowns as well by various weight groupings, providing an opportunity for further, in-depth analysis. Cattle on Feed reports are usually released on Friday afternoons after the cattle futures market closes, and the results will be reflected on the opening the following Monday morning.