The USDA Cattle on Feed Report showed placements for the month of February at 99.4% versus trade expectations of 95.6% and a range of 92.5% to 99.0%. Marketings came in at 98.9% of last year as compared with the average estimate of 98.8% and a range of 97.2% to 99.8%. Cattle on Feed supply as of April 1st came in at 95.6% of last year versus average trade estimate of 94.9% with a range of 94.3% to 95.4%.

The report news was bearish as placements came in well above trade expectations and even above the range of expectations. With the big discount of June cattle to the cash market, corrective breaks might continue to be shallow.

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.