Cattle on feed Activity Increases 03/24/2024

Feedlots increased both feeder placements and finished cattle sales in February  2024. Cattle on feed March 1 was up 1% from a year ago. Based on feeder placemats over the last six months cattle marketed in the next six months will likely decline 3% year over year.

Cattle weights at slaughter have increased this year as cattlemen feed to heavier weights due to the high cost of feeder replacements and the lower cost of corn and soybean meal. USDA has projected a 2% year over year reduction in US beef production in 2024.

The dominant force in the finished cattle futures over the next year will likely be the shortage of feeder cattle and the need to pull  heifers away from feedlots and into the replacement herd.

USDA expects the US beef  shortage to be supplemented by an increase in beef imports and  a reduction in exports. Near $200 fat cattle values may be needed to ration available domestic beef supplies and draw in imports.