This afternoon’s Cattle Inventory report didn’t really bring anything new to the table. All of the numbers were close to expectations and neutral cattle. The friendly numbers from the report were the Beef Replacements (which came in 1% below expectations) and the Calves Under 500 Pound (which was also 1% below expectations).
The numbers from the report once again show no herd expansion is in place but it also shows that no huge reduction in head numbers has taken place. This should be supportive cattle and help cattle make a test of the 67% retracement of the Sept to Dec sell off, but it likely doesn’t have the strength to push the market higher than that at this point.
Estimates for the Cattle Inventory report is: All Cattle: 98% (as expected), Total Cows to Calve: 98% (as expected), Beef Cows to Calve: 98% (as expected), Heifer 500 Pounds and Over: 99% (as expected), Beef Replacements: 99% (1% lower than expected), Calves under 500 Pounds: 97% (1% below expectations), and Annual Calf Crop: 98% (as expected).
