The latest Cattle on Feed report showed higher placements and feedlot inventory from this time a year ago.
“The USDA Cattle on Feed report was recently released, which set total inventory levels on Feb. 1 in feedlots of over 1,000 head capacity at 12.106 million head, 1.5% (178,000 head) above a year ago,” the Livestock Marketing Information Center said.
This result outpaced the range of expectations ahead of the report.
“The range of pre-report estimates was from down 0.4% to up 1.1% from last year,” the LMIC said. “The actual cattle on feed number falls just above the highest pre-report estimate and contrary to those analysts expecting the inventory to be below a year ago.”
January marketings were lower, in part because there were fewer slaughter days this January, the marketing center said. January marketings were 1.822 million head, 5.6% below a year ago.
Cattle placements surged, beating expectations.
“Cattle placed on feed for the month of January was 2.017 million head, up 3.2% (62,000 head) from last year and above analysts’ expectations,” the LMIC said. “Prior to the report the range of estimates was wide, from down 4.9% to up 3.0% with the actual just exceeding the highest estimate.”
Iowa led the way with a 15.2% increase in placements, with Texas, Kansas and Nebraska showing the next-biggest increases.
These higher placements could mean feed costs will be more of an issue. Corn prices have been on the rise.
The higher feed costs could prompt some changes in strategy from cow-calf producers.
“High feed costs may incentivize cow-calf operators to add more weight to calves before placing into feedlots,” the LMIC said. “This may be a challenge as much of the western U.S. remains in drought, potentially limiting available pasture and feed supplies.”
Another factor impacting the feed situation is the severe winter weather and cold across the Midwest and South in early- and mid-February.
“The harsh winter weather in mid-February likely depleted hay stocks in some areas,” the LMIC said.
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