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Derrell Peel of Oklahoma State University reports that heavy feeder cattle have gained value relative to lighter feeders through July and August. The August Cattle on Feed report showed on-feed inventory of 10.165 million head, 101.6 percent of last year, with placements at 101.6 percent.
Feedlots are favoring heavier feeders to turn over pens faster.
Feedlot preference for heavier cattle and discounts on deferred futures shape feeder demand and the price spread between weight classes, which affects cow-calf and stocker returns.
u.osu.eduSmith atAug 24, 2016After 44 past neutral report events, FCATTLE moved a median +0.3% over 5 sessions (59% higher; middle half -0.9% to +1.0%), and +0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
