News

Cattle placements up 4% on year

 

Placements of cattle into U.S. feedlots have increased for the 11th month in a row.

The USDA says placements during January 2018 were up 4% on the year 2.068 million head as cow-calf operations continue to expand and the industry tries to meet domestic and export demand for beef. Ahead of the report, some analysts expected a year to year decline because of tighter margins, higher feed costs and drought or near drought conditions in many of the major U.S. feeding areas. These cattle will head to market from June through September.

By weight, placements of cattle weighing less than 600 pounds were 375,000 head, 600 to 699 pound placements were 450,000 head, and the 700 to 799 pound category accounted for 625,000 head, while 800 to 899 pound placements were 418,000 head, placements on 900 to 999 pound cattle were 115,000 head, and placements of cattle weighing more than 1,000 head were 85,000 head.

Marketings were 6% above a year ago at 1.858 million head, generally in-line with pre-report estimates, and with one more business day in January 2018 than in January 2017.

The total number of U.S. cattle on feed as of February 1st was 8% larger than last year at 11.630 million head, also close to pre-report estimates.

Other disappearances were 69,000 head, 30% above January 2017.

The numbers look neutral to bearish for cattle futures and cash business.

The next set of on feed numbers is out March 23rd.