Cattle Futures Edge Higher as Record-Low Placements Fuel Bullish Sentiment

Live cattle futures closed mixed but steady on Friday, with front months down a dime to 12 cents higher and deferred contracts up 15 to 47 cents, as traders positioned ahead of a bullish Cattle on Feed report. December live cattle gained $2.77 for the week, while feeder cattle futures rose $1.05 to $2.22 across the board, posting a weekly gain of $6.22. The monthly NASS Cattle on Feed report showed September placements at 1.777 million head, down 12.07% year-over-year and a record low for the month, well below estimates. October 1 on-feed inventory totaled 11.372 million head, down 0.4% year-over-year versus expectations of a 0.3% increase. Marketings fell 6.62% to 1.52 million head. The NASS Cold Storage report indicated 400 million pounds of beef stocks at end-September, down 1.25% from August and 0.73% year-over-year. October live cattle settled at $229.875, up $0.125, while October feeder cattle closed at $348.325, up $2.225. Managed money held a net long of 51,143 contracts in live cattle as of Tuesday, an increase of 2,395 on the week.