Market News & Headlines >> USDA Confirms Record Large Feb. 1 Feedlot Inventory

Friday afternoon’s monthly USDA Cattle-on-Feed report appeared to be largely neutral for prices as it showed the Feb. 1 feedlot inventory along with January feedlot placements and marketings were all closely in line with trade expectations.

USDA confirmed a record large Feb. 1 feedlot inventory, pegging the supply of cattle in U.S. feedlots at 100.8% of a year earlier, matching the average of trade estimates that ranged from 100.1%-102.0%, according to a Reuters News Service survey of 11 livestock analysts. At 12.199 million head,  the Feb. 1 feedlot inventory was  93,000 head above a year earlier and was largest recorded in the current USDA data series going back to 1996.

USDA pegged January feedlot marketings at 96.9% of a year earlier compared with trade estimates that averaged 97.3% of a year earlier in a range from 96.7%-98.7%. January marketings totaled 1.773 million head, 56,000 below a year earlier and were the lowest for the month in five years. Sluggish marketings were anticipated after the spread of the Covid-19 Omicron variant disrupted livestock slaughter operations during January.

USDA pegged January feedlot placements at 98.8% of a year earlier compared with pre-report expectations that averaged 99.2% in a range from 96.0%-104.0%. At 1.999 million head, January feedlot placements were  25,000 head below a year earlier.