March Cattle Feedlot Report Surprises

The USDA released their monthly look at cattle and feedlots last week, and it surprised some analysts due to higher than expected placements.

Senicaa Herron, USDA Livestock Analyst said 2.1 million head were placed in March, which is not only well above March a year ago, but, “That is the highest number of animals placed on record [for March] since the series began in 1996.”

March’s report comes on the heels of a lower than expected number of animals placed in lots in February.

The large placements, Herron noted, could have some pretty big impacts on prices later this summer.

“That higher than expected number of marketings gives us potential and implications for prices being pressured lower.”

How low? Right now, cattle on feed run about $130 per hundredweight, while in late summer it could be $115.