Cattle on Feed Contains Mild Surprise

The March Cattle on Feed report by the USDA contained surprising numbers as only feedlots saw only a five percent bump compared to this time last year with analysts expecting a higher number.

USDA Livestock Analyst Shayle Shagam says there could be a variety of reasons.

“Some of that may reflect the fact that there is good forage out there. There is, apparently, an abundance of cattle. We have seen prices for feeder calves come down and so as long as there is forage there may be less incentive by some cow-calf operators or backgrounders to place those animals into feedlots.”

Shagam says cattle prices have dropped, but could rebound.

March saw 1.9 million head of cattle placed into feedlots.