USDA released its monthly Cattle on Feed (COF) report this past Friday, and many of the pre-report industry estimates were accurate (see Ag Perspectives, 19 October). The total number of cattle on feed as of 1 October was 10.8 million or 105 percent of last year, the largest October inventory since 2012.

Placements in September totaled 2.15 million head or 113 percent of the same month a year ago, surpassing pre-report estimates and the largest volume for September since 2011. Marketings were 1.78 million head or 103 percent of year-ago levels.

Placements were partially driven by drought conditions in the Plains, but that pace will necessarily slow moving forward. Another key point is that there was one less weekday in September 2017...