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Peel points to weight breakdowns

USDA’s estimate for September cattle placements showed a slight year to year increase bur according to one analyst, the number may not cause a major reaction.

Derrell Peel, livestock marketing specialist at Oklahoma State University, tells Brownfield the key for placements was in the weight breakdowns, “All of the increase was in the lightweight category of cattle, so I think we’re still moving some lightweight cattle in for lack of a home anywhere else.”

Peel adds, “Nebraska was the only state that showed an increase in heavyweight cattle and Nebraska has had very good forage conditions this year. Some of those yearling cattle are still grazing in Nebraska, starting to come into town as indicated here but probably a few more of those to go. Nebraska also had an increase in the lightweight category, so they placed a little bit of everything this past month.”

Allendale’s David Kohli says the numbers should be neutral to bearish for futures.