Market News & Headlines >> Record Large April 1 Feedlot Inventory
The monthly USDA Cattle-on-Feed report released this past Friday afternoon was clearly bearish for cattle prices as it pegged both March feedlot placements and the April 1 feedlot inventory above all pre-report trade estimates.
USDA put March feedlot placements at 1.990 million head or 99.6% of a year earlier compared with trade expectations that averaged 92.2% in a range from 87.0%-96.0%.
USDA pegged the April 1 feedlot inventory at 12.105 million head or 101.7% of a year earlier compared with trade estimates that averaged 100.4% in a range from 99.5%-101.0%. The inventory was record large for the date.
USDA pegged March feedlot marketings at 98.0% of a year earlier, in line with trade expectations that averaged 98.2% in a range from 97.7%-98.7%.
The higher-than-expected placements have been due partly to forced movement of cattle on to feed because of drought conditions in the southern Plains. The USDA data implies live cattle marketings will be larger than expected during the third quarter of the year, but also implies tight feeder cattle supplies outside of feedlots.