Largest March Placements in History

Today the April 1 cattle-on-feed report was released by the USDA. The bullish pre-report optimism turned out to be more negative than what analysts had expected.

USDA reports that the inventory was slightly above April 1, 2016. The inventory included 7.23 million steers and steer calves, down 2 percent from the previous year. This group accounted for 66 percent of the total inventory. Heifers and heifer calves accounted for 3.67 million head, up 5 percent from 2016.

Also in the April 1 COF report, March placements were the largest in history (since 1996). Placements in feedlots during March totaled 2.10 million head, 11 percent above 2016. Placements were the highest for March since the series began in 1996. Net placements were 2.05 million head. During March, placements of cattle and calves weighing less than 600 pounds were 350,000 head, 600-699 pounds were 295,000 head, 700-799 pounds were 620,000 head, 800-899 pounds were 585,000, 900-999 pounds were 185,000, and 1,000 pounds and greater were 67,000 head.

According to CattleFax cattle-on-feed numbers are expected to remain seasonal through the course of the year.  This means feedyard inventory should observe a steep decline in the May on-feed report and settle into the tightest annual inventory in early fall.

Picture: CattleFax and USDA

CattleFax, USDA and Northern Ag Network 2017