Friday at 2PM CT the USDA will release the September cattle on feed report. Given the dry conditions that have plagued much of the Midwest since early August, placements in the September report are expected to be high. That would be the result of yearling cattle coming off of pasture early. Along with calves being weaned early.
In general analyst also expect the total number of cattle on feed to be higher in September 2020 than September 2019. While cattle marketed will be below year ago levels. That could be due partially to fewer work days than the previous year. For the most part weekly cattle slaughter rates have started to equal year ago levels.
Watch for more on this website Friday afternoon when the data is released.
September Cattle on Feed Report Estimates
|September Cattle on Feed
||Range of Estimates
Thursday brought about another strong day of gains in the grain market. Soybeans continue to hold well over the $10 mark. Looking at a continuous chart that puts soybeans back towards highs not seen since early 2018 before the US China trade war kicked off. Kyle Bumsted with Allendale Inc. believes this now give farmers a unique opportunity to go back and visit their marketing strategy. 2019 has been a year that farmers have seen plenty of government payments, but now the market seems to be giving opportunity to market at a profitable level.
Bumsted also gives strong insight into why the feeder cattle corn spread may be nearing it’s useful end. Rather feeders are looking at the cash difference between the fats getting on the truck and the lightweights coming off the truck. Finally there is the lean hog market that really caught fire on Thursday. Could it be starting to get top heavy or is there more room to go higher?
You can hear all of Bumstead’s comments here: