Almost all cats do this, regardless of whether they are indoor or outdoor cats. The sense of scent is one of the primary ways cats identify things, including each other. Cats have anal sacs located on both sides of the anus. They are scent glands. The scent of a cat lets another cat know if the other one is a friend or enemy!
Dr. Neely
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Current Topic - Why do cat's sniff each other's behinds?