USDA report on fattening cattle surprised analysts

A government report released by the USDA following the close of the Chicago Mercantile Exchange (CME) last Friday said much more cattle were traded in July than traders had expected.

The USDA reported that 1.77 million HEAD of cattle were placed on feedlots in July, up 2% from a year earlier. Analysts polled by REUTERS had expected 1.713 million heads on average.

The USDA also reported total fattening cattle as of August 1 at 11.2 million head, higher than a year ago and above market expectations. July sales of 1.83 million heads were 4% lower than a year ago, but in line with traders' expectations.

Live cattle futures rose slightly in technical trading, analysts said, as speculators increased their net long positions in corn.