Market News & Headlines >> April Feedlot Placements Seen Largest in 14 Years
The livestock trade is expecting Friday’s monthly USDA Cattle-on-Feed report to show the largest April feedlot placements in 14 years amid strong profit margins for feedlots, while feedlot marketings are expected to be above a year earlier for the ninth straight month.
Trade estimates of April feedlot placements average 106.8% of a year earlier in a range from 103.1%-112.7%. At the average of trade estimates, actual April placements would total 1.777 million head, 113,000 above a year earlier and the most since feedlots placed 1.870 million head on feed in April 2003.
Pre-report estimates of April feedlot marketings average 101.8% of a year earlier in a range from 101.0%-102.7%. At the average of trade estimates, actual April marketings would total 1.687 million head, up 29,000 head from a year earlier. July 2016 was the last time monthly marketings were below a year earlier.
The May 1 U.S. feedlot inventory is expected to be slightly larger than a year earlier. Trade estimates of the number of cattle on feed as of May 1 average 100.8% in a range from 98.1%-102.3%. At the average of trade estimates, the actual April 1 feedlot inventory would total 10.864 million head, 81,000 head above a year earlier and the largest for the date in five years.