Cattle on Feed Report: Feedlot inventory continues to shrink

USDA estimated there were 11.094 million head of cattle in large feedlots (1,000-plus head) as of Sept. 1, down 248,000 head (2.2%) from year-ago but 71,000 head more than the average pre-report estimate implied. Placements fell 5.1%, while marketings dropped 6.0% from year-ago levels during August.

Placements dropped from year-ago in all of the weight categories, with lightweights (under 600 lbs.) down 2.3%, 6-weights down 4.7%, 7-weights down 2.2%, 8-weights down 7.9%, 9-weights down 9.3% and heavyweights (1,000-plus lbs.) down 5.3%. Placements fell 50,000 head in Colorado, 60,000 head in Nebraska and 22,000 head in “other states,” while Kansas and Texas placed 15,000 head and 10,000 head more cattle into feedlots, respectively, than August 2022.

All three of the categories came in a little on the negative side of the average pre-report estimates. But the report data is far from bearish as it showed a decline in feedlot inventories for a 12^th consecutive month – a trend that will continue given shrinking U.S. calf supplies.