February Feedlot Numbers Higher Than One Year Ago

Many cattle market analysts expected the number of placements of cattle into feedlots last month to be smaller than in February a year ago.

"And what we got, obviously, was a larger number, so to some extent this report probably will have some bearish connotations," said USDA Livestock Analyst Shayle Shagam.  He noted bearish was more about the coming summer and into the fall.

Friday's USDA report on feedlot activity showing February placements 1.86 million head, 2% above 2018.  Shagam says analysts may have thought the nasty February weather would have slowed down the movement of cattle in feedlots.

"There are a large number cattle on winter wheat pasture," Shagam continued.  "When we look at the numbers in January first, they were about 27% above a year ago, and to some extent, the weather conditions may have delayed the movement of these cattle. But, we may be seeing the first ticks of some of those cattle that were outside feedlots being placed on feed."

Leaving feedlots with an inventory March first of 11.8 million head, 1% above a year ago.

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