USDA will release its Cattle on Feed report tomorrow; analysts’ pre-report estimates peg the total number of cattle on feed as of 1 December at 97 percent of December 2021. All the analysts’ forecasts were all below 100 percent, ranging from 96.5 to 97.6 percent of a year ago. This will end the year with the third consecutive month, and third month of 2022 where on-feed inventories are lower than year-ago levels – a big turnaround based on drought fueled herd liquidation. It would also be the first December reduction in inventory since 2016. 

Placements in November are forecast to be 96 percent of last year. Marketings are expected to be 101 percent of last year, based on the pace of slaughter.  Outside of th...