Neutral Cattle on Feed Report
USDA estimated there were 11.608 million head of cattle in large feedlots (1,000-plus head) as of May 1, down 414,000 head (3.4%) from year-ago, which was virtually in line with pre-report expectations. April placements declined 4.2%, while marketings fell 10.1%, with both figures slightly lower than the average pre-report estimates.
|
Cattle on Feed Report |
USDA |
Average Estimate (% of year-ago) |
|
On Feed on May 1 |
96.6 |
96.5 |
|
Placements in April |
95.8 |
96.3 |
|
Marketings in April |
89.9 |
90.3 |
Placements declined in all categories except heavyweights (1,000-plus lbs.), which were steady with last year. Placements declined 1.4% for lightweights (under 600 lbs.), 9.3% for 6-weights, 1.2% for 7-weights, 7.3% for 8-weights and 2.4% for 9-weights. Placements fell 20,000 head in Colorado, 10,000 head in Kansas, 20,000 head in Nebraska and 25,000 head in Texas. “Other states” placed 1,000 fewer head of cattle into feedlots during April.
On the surface, the report data is neutral. But the underlying numbers are bullish, as this marked the eighth straight month of year-over-year declines in feedlot inventories.
