US cattle on feed up 1.5 percent in October

US feedlot inventories increased on a year-on-year basis, with the number of cattle on feed up by 1.5 percent to 11.1 million head as of November 1, according to the USDA.

Placements during October increased 1.5 percent on-year to 2.47 million head, but were smaller than pre-report estimates of 2.6 percent. This marks the fourth consecutive month that numbers have increased compared to last year.

Feedlots continue to place heavier animals on feed, which should maintain the bias towards heavier weights of fed cattle and the increased likelihood of more cattle being graded Choice into early 2010.

Cattle weighing 363kg or heavier accounted for 25.7 percent of October placements, up from last year's 23.8 percent and the five-year average of 18.1 percent.

The USDA said marketings of fed cattle during October dropped 3.3 percent on-year to 1.76 million. Marketings were smaller than pre-report estimates, which expected marketings to be 2.9-percent lower.