Cattle on Feed Report     02/21  14:05

Feb. 1 Cattle on Feed Up 2%


By DTN Staff

                      USDA Actual   Average Estimate       Range

On Feed Feb. 1            102%           102.3%     101.8-103.0%
Placed in January          99%           101.5%      97.8-103.5%
Marketed in January       101%           101.0%      97.6-101.6%

OMAHA (DTN) -- Cattle and calves on feed for the slaughter 
market in the United States for feedlots with capacity of 1,000 
or more head totaled 11.9 million head on Feb. 1, 2020. The 
inventory was 2% above Feb. 1, 2019, USDA reported on Friday.

Placements in feedlots during January totaled 1.96 million head, 
1% below 2019. Net placements were 1.90 million head. During 
January, placements of cattle and calves weighing less than 600 
pounds were 390,000 head, 600-699 pounds were 455,000 head, 700-
799 pounds were 535,000 head, 800-899 pounds were 400,000 head, 
900-999 pounds were 105,000 head, and 1,000 pounds and greater 
were 70,000 head.

Marketings of fed cattle during January totaled 1.93 million 
head, 1% above 2019.

Other disappearance totaled 54,000 head during January, 11% 
below 2019.

DTN ANALYSIS

"February's Cattle on Feed Report comes with few surprises this 
time around," said DTN Livestock Analyst ShayLe Stewart. "Seeing 
on-feed numbers higher falls right in line with the last handful 
of reports that showed placement numbers higher as well. It's 
important to understand that cattle on feed right now are 
largely going to be sold in the heat of this upcoming summer. 
With a plethora of fats ready to go in the dog days of summer, 
prices will most likely wane, as usual, but will also be 
pressured by the sheer number of cattle available. It will be 
critical to watch beef demand going into the summer months and 
essential for the market to stay current on readily available 
fat cattle supplies.
  
"One may look at the placement numbers and think the lower 
figure is a bullish indication, but in this case, it really 
comes down to timing. More feeders were placed in feedlots in 
2019's fourth quarter than usual, which consequently leaves 
fewer feeders to be placed this time of year. The bump in feeder 
cattle sales throughout the country is largely because of 
limited availability." 

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DTN subscribers can view the full Cattle on Feed reports in the 
Livestock Archives folder under the Markets menu. The report is 
also available at https://www.nass.usda.gov/.