USDA estimated there were 11.797 million head of cattle in large feedlots (1,000-plus head) as of Feb. 1, up 43,000 head (0.4%) from year-ago. That marked the fifth straight month of year-over-year increases in feedlot numbers. Placements dropped 7.4% from year-ago, though analysts expected an 11.6% decline. Marketings inched down 0.1% from January 2023.
Cattle on Feed Report | USDA | Average Estimate (% of year-ago) |
On Feed on Feb. 1 | 100.1 | 100.4 |
Placements in January | 88.4 | 92.6 |
Marketings in January | 99.8 | 99.9 |
Placements declined 8.6% for lightweights (under 600 lbs.), 6.0% for 6-weights, 12.8% for 7-weights and 6.0% for 8-weights. Feedlots placed 5.0% more 9-weights and 7.7% more heavyweights (1,000-plus lbs.). Placements dropped 115,000 head in Kansas, 35,000 head in Texas and 25,000 head in Colorado, while they increased 15,000 head in Nebraska and 16,000 head in “other states.”
The underlying data in the report is bullish as there continues to be a tightening supply of cattle moving into feedlots, with placements down from year-ago levels for a third straight month – a trend that will continue. But with placements near the top end of the wide range of pre-report estimates, it will take away some of the friendliness of the data. Still, we expect limited market response.