Market News & Headlines >> Low January Feedlot Placements Seen

Friday’s monthly Cattle on Feed report from USDA is expected to peg January feedlot placements at the lowest level in 28 years amid tightening U.S. cattle supplies, while pegging the Feb. 1 feedlot inventory roughly unchanged from a year earlier.

Trade estimates of January feedlot placements average 88.4% of a year earlier in a wide range from 81.6%-94.0%. At the average of trade estimates, January feedlot placements would total 1.707 million head, down 224,000 head from a year earlier and the lowest since 1996, the first year of the current USDA data series.

Trade estimates of January feedlot marketings average 99.8% of a year earlier in a narrow range from 98.6%-100.3%. Marketings are expected to be slightly below last year even though January held one more marketing day this year versus last. At the average of trade expectations, January feedlot marketings would total 1.842 million head, a mere 4,000 head below a year earlier.

Pre-report estimates of the Feb. 1 U.S. feedlot inventory average 100.1% of a year earlier in a range from 99.4%-101.1%. At the average of trade estimates the Feb. 1 feedlot inventory would total 11.716 million head, up a marginal 12,000 head from a year earlier.