The USDA Cattle on Feed reported released after the close Friday was in line with market expectations. July placements were up 17 percent from last year, marketings were up 2 percent and the August 1 feedlot inventory was 7 percent above the year-ago level. Marketings were about a half point to one point below expectations but the other numbers virtually matched the pre-report estimates.



The report should have no significant impact on the futures market Monday. Instead, developments in the cash market Friday afternoon will probably determine futures market direction early next week. The large increase in placements was expected with drought forcing cattle into feedlots earlier than normal. Placements of cattle weighing less than 600 pounds jumped more than 40% from the year-ago level.