Cattle Feedlot Placement Report Contains Surprising Numbers

USDA released their latest look at the number of cattle in feedlots for December.

Livestock analyst Shayle Shagam said placements were 18 percent above a year ago, far exceeding the expected eight percent.

“Some of the returns have been improving with gains in fed cattle prices. Relatively low grain prices could have encouraged them to increase their placements. Some of those cattle that may have been bound for grass or winter pasture may have been placed in feedlots instead.”

Cattle feedlot inventory also rose from December 2015 which could mean pressure put on prices in the spring.