Cattle on feed
March Cattle on Feed Report
This report showed a total inventory of 11.806 million head for the United States on March 1. This lack of change year-over-year is right in line with analysts’ expectations of an average increase of 0.2% in feedlot inventories.
While total inventories are an important component of the report, other key factors include placements (new animals being placed on feed) and marketings (animals being taken off feed and sold for slaughter). Cattle feeders aggressively marketed fed cattle in February, pushing marketings up 5.5% to 1.775 million head, nearly matching the average analyst expectation of a 5.6% increase. The last quarter of 2019 offered decent opportunities for hedging, and some of February’s aggressive marketing may have been hedged cattle. This aggressive marketing could very much continue into March, particularly with whatever remaining cattle have already been hedged.