Cattle on Feed Report: Record March 1 feedlot inventory
USDA estimates there were a record 12.163 million head of cattle in large feedlots (1,000-plus head) as of March 1, up 163,000 head (1.4%) from year-ago and 31,000 head more than the average pre-report estimate implied. February placements rose 9.3% and marketings increased 4.9% from year-ago levels last month.
|
USDA |
Avg. Trade Estimate (% of year-ago) |
|
|
On Feed March 1 |
101.4 |
101.1 |
|
Placements in February |
109.3 |
106.1 |
|
Marketings in February |
104.9 |
104.2 |
The bigger-than-expected jump in placements seems to be driven by poor pasture conditions due to drought in the Plains. Texas (up 40,000 head), Kansas (up 50,000 head), Nebraska (up 55,000 head) and Colorado (up 10,000 head) accounted for nearly the entire 157,000-head increase in placements. Feedlots placed more cattle in every weight category except for heavyweights (1,000-plus lbs.), which were steady and accounted for only 3.0% of the total. Placements increased 7.5% in lightweights (under 600 lbs.), 10.2% in 6-weights, 8.6% in 7-weights, 12.5% in 8-weights and 8.0% in 9-weights compared to year-ago levels.
The report data is slightly negative compared to pre-report expectations, especially for deferred live cattle futures. But we doubt there’s a lasting impact from report.
