The USDA pegged Feb-23 cattle on feed supply at 95.9% of last year. Placements during Jan-23 came in at 96.4% of last year and Marketings were 104.2% of last year.

The USDA Cattle on Feed report showed placements for the month of January at 96.4% versus trade expectations for 97.1% of a year ago with a range of 95.5%-99.7% range. Marketings came in at 104.2% of last year as compared with the average estimate of 103.9% and a rage of 102.7% - 104.9%. The Cattle on Feed supply as of February 1st came in at 95.9% of last year as compared with trade expectations for 96.5% with a range of 95.7% to 99.5%.

Analysis: With placements coming in below trade expectations and marketing's a bit higher than expected, the report is supportive against trade expectations. The sharp drop in weights is keeping beef production low, and the placements are low enough to keep a supportive supply Outlook for the first half of the year. June cattle posted contract highs for the fourth session in a row before closing lower on the day and this is a sweeping key reversal from an overbought condition. Key support levels are back at 159.50 and 158.75.

This file contains the monthly total number of cattle and calves on feed, placements, marketings, and other disappearances; by class and feedlot capacity for selected states; number of feedlots and fed cattle marketings by size groups for selected states. Data is organized by state and by U.S.

This report offers a timely update on the current makeup of the beef cattle herd. It is probably the most-watched of the USDA reports for the cattle markets and can be a market-moving event if it contains a surprise. The marketings number provides an indicator of recent demand and has the ability to affect the price of nearby futures contracts. The placements number offers insight on the future supply of market ready cattle and has a tendency to affect the deferred contracts. Cattle are placed on feed for anywhere from 90 to 180 days, so a large placements number in June would project large market-ready supply in the fall. Both the placements and the marketings numbers inform the on feed number, which is a measure of current supply. The report offers state-by-state breakdowns as well by various weight groupings, providing an opportunity for further, in-depth analysis. Cattle on Feed reports are usually released on Friday afternoons after the cattle futures market closes, and the results will be reflected on the opening the following Monday morning.