Record March 1 feedlot inventory expected

USDA’s Cattle on Feed Report Friday afternoon is expected to show March 1 inventories up 1.1% from year-ago levels, which if realized would top last year’s record for the date by 132,000 head. Traders expect February placements to be up 6.1% as dry conditions across the Plains continued to push more animals off pastures and into feedlots, despite high feed prices. But given a smaller calf crop last year, it also implies heifers are being moved into feedlots instead of being held back for breeding. Marketings in February are expected to be up 4.2% from last year, which would also be around 2% higher than February 2020 levels, implying the processing pace has returned to pre-Covid levels.