The cattle on feed report came out today and read as follows:
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.2 million head on August 1, 2022. The inventory was 1 percent above August 1, 2021. This is the second highest August 1 inventory since the series began in 1996.
Placements in feedlots during July totaled 1.77 million head, 2 percent above 2021. Net placements were 1.71 million head. During July, placements of cattle and calves weighing less than 600 pounds were 410,000 head, 600-699 pounds were 280,000 head, 700-799 pounds were 400,000 head, 800-899 pounds were 405,000 head, 900-999 pounds were 195,000 head, and 1,000 pounds and greater were 75,000 head.
Marketings of fed cattle during July totaled 1.83 million head, 4 percent below 2021.
Other disappearance totaled 56,000 head during July, 2 percent above 2021.
Production is still supposed to be dwindling going into the 4th quarter and the 1st quarter of next year. December Cattle finished up .450 today on decent volume. 152 seems to be the level of resistance as the market doesn’t want to break through 152 over the past 2 sessions. With a bearish on feed report, albeit slightly bearish, and a suspected drop in production still, I believe the market will consolidate in the 150-152 price range for the next couple weeks unless we see a strong breakout to the upside.