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Cattle placements down, but near top end of estimates
Placements of U.S. cattle into feedlots declined in January, just not quite as much as what some analysts were expecting.
The USDA says placements to start 2024 were 1.792 million head, a decrease of 7% on the year, leading to tighter ready numbers this spring and summer, but that was towards the high end of pre-report estimates.
That drop was partially due to the bitterly cold conditions and snow experienced in many of the major feeding areas during January, impacting transportation and animal health, but unless this placements figure gets revised in coming months, the weather was less of a factor than what many were anticipating.
Marketings were pegged at 1.844 million head, slightly lower than last year, while the total number of cattle on feed in the U.S. on February 1st was 11.797 million head, modestly higher.
Other disappearances, which includes weather related death loss, were 81,000 head, an increase of 29% from the previous year.
The numbers look supportive for cash, wholesale, and futures, but that depends on how the placements number is interpreted and how beef demand preforms.
Comparisons for Brownfield states:
Iowa: On feed: 640,000 head, down 2% from February 1st, 2023; Placements: 115,000 head, 10% higher than January 2023; Marketings: 103,000 head, steady with a year ago
Kansas: On feed: 2.39 million head, down 2% from February 1st, 2023; Placements: 385,000 head, 23% lower than January 2023; Marketings: 460,000 head, 7% more than a year ago
Minnesota: On feed: 105,000 head, up 11% from February 1st, 2023; Placements: 11,000 head, 15% lower than January 2023; Marketings: 10,000 head, 17% less than a year ago
Nebraska: On feed: 2.55 million head, down 1% from February 1st, 2023; Placements: 505,000 head, 3% higher than January 2023; Marketings: 490,000 head, 2% less than a year ago
South Dakota: On feed: 240,000 head, up 12% from February 1st, 2023; Placements: 41,000 head, 3% higher than January 2023; Marketings: 30,000 head, 9% less than a year ago
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