Despite Placements, Cattle on Feed Report Within Expectations

CHICAGO, IL – USDA released their monthly Cattle on Feed Report for April 1, and for one brokerage firm, there were no surprises. Prior to the report, Allendale expected the final number of cattle on feed to be 11.899 million head, a 5.3 percent increase over the same time period last year. The actual number, according to USDA, was 5 percent higher than April 1, 2020, with 11.9 million head representing the second highest April 1 inventory since the series began in 1996. The inventory included 7.4 million steers and steer calves, up 5 percent from the previous year and accounting for 62 percent of the total inventory, while heifers and heifer calves accounted for 4.5 million head, up 7 percent from 2020. Placements in feedlots during March totaled 2 million head, equal to a 28 percent year over year gain. While a very large percentage gain, Allendale expected the result due primarily to the comparison against March 2020, a very low placement month due to virus issues. Also, the Chicago-based brokerage firm explains that placements last month were recovering from the cold snap in February. Finally, USDA set marketings for March at the second-highest level in history (since 1996) at 2.04 million head, 1 percent above 2020, and other disappearances totaled 60,000 head for a decline of 2 percent.
(SOURCE: All Ag News)