The USDA Cattle on Feed Report showed placements for the month of February at 109.7% of last year versus an average trade expectation of 106.2% and a range of 102.7% to 108.8%. This was the highest placements as percent of the previous year since February 2022. February marketings came in at 103.4% versus 103.9% expected (range of 102.5%-104.7%). Cattle on feed supply as of March 1 came in at 101.3% of last year versus 100.9% expected (range 100.1%-102.7%).

The report was bearish, particularly for the deferred contracts, because placements came in above the average expectation and above the upper end of the expected range. Marketings were close to expectations. March 1 on feed supply was above the average estimate but within the expected range, so it was somewhat bearish for the close-in contracts. The 90-day cattle supply was 6.656 million head, the highest since June 2020, and the 120-day supply was 4.485 million, the highest since July 2020. Based on the report, we could see nearby cattle futures open 1.00 lower on Monday.

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.