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Cattle on feed total up slightly

 

USDA’s cattle on feed report came out close to pre-report expectations and indicates at least some expansion of the U.S. herd.

The total number of cattle on feed in the U.S. on February 1st was up slightly from a year ago at 10.711 million head. That’s on feedlots with a capacity of 1,000 head or larger and represents 81.6% of all cattle and calves on feed in the U.S.

January placements came out at 1.787 million head, 11% less than last year, with packers discouraged by negative feeding margins. By weight, placements on cattle weighing less than 600 pounds were 405,000 head and 600 to 699 pounders were 340,000 head, while placements on cattle weighing 700 to 799 pounds were 477,000 head and the 800 pound and heavier category was 565,000 head.

Marketings were pegged at 1.625 million head, a 9% year to year decline, due to tighter profit margins on outgoing cattle, and the lowest figure for January since the series of reports started in 1996.

Other disappearances totaled 77,000 head, 8% more than January 2014.

The numbers look neutral to a little negative for Chicago Mercantile Exchange cattle futures.

USDA says it has eliminated cows and bulls from estimates going back to February 2013 so all cattle counted would grade select or better and has revised all impacted reports.