Cattle on Feed Report: Neutral vs. expectations

The decline in feedlot numbers was the first drop versus year-ago in eight months.

Cattle on Feed Report
Cattle on Feed Report
(Pro Farmer)

USDA estimated there were 11.554 million head of cattle in large feedlots (1,000-plus head) as of May 1, down 100,000 head (0.9%) from year-ago. That was the first year-over-year decline in feedlot inventories in eight months. April placements dropped 5.8%, while marketings jumped 10.1% from year-ago levels.

Cattle on Feed Report

USDA
(% of year-ago)

Average Estimate

(% of year-ago)

On Feed on May 1

99.1

99.2

Placements in April

94.2

93.9

Marketings in April

110.1

109.8

Placements declined in all but the two heaviest categories (9-weights and heavyweights), which were both unchanged from year-ago, though they only accounted for a combined 16.6% of the total number of cattle moved into feedlots in April. Placements dropped 6.9% for lightweights (under 600 lbs.), 10.2% for 6-weights, 8.5% for 7-weights and 3.6% for 8-weights. Placements declined 10,000 head in Colorado, 50,000 head in Kansas, 40,000 head in Texas and 17,000 head in “other states,” while Nebraska feedlots placed 15,000 head more cattle than year-ago last month.

The data is virtually right in line with pre-report expectations and should have no market impact coming off the extended holiday weekend.