United States Cattle on Feed Up 6 Percent
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.1 million head on September 1, 2018. The inventory was 6 percent above September 1, 2017. This is the highest September 1 inventory since the series began in 1996.
Placements in feedlots during August totaled 2.07 million head, 7 percent above 2017. Net placements were 2.02 million head. During August, placements of cattle and calves weighing less than 600 pounds were 430,000 head, 600-699 pounds were 335,000 head, 700-799 pounds were 460,000 head, 800-899 pounds were 475,000 head, 900-999 pounds were 240,000 head and 1,000 pounds and greater were 130,000 head.
Marketings of fed cattle during August totaled 1.98 million head, slightly above 2017.
Here is a suggestion for Hedgers. The cattle on feed report looks bearish in my opinion as the continued aggressive increase in placements has not abated. You could buy the November Feeder Cattle 153.00 put and sell the November Feeder Cattle 165.00 call for even money plus commissions and fees.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, September 27th at 3:00 pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
**Call me for a free consultation for a marketing plan regarding your livestock needs.* *
Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109,
www.walshtrading.com
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.