By DTN Staff
This article was originally published at 2:04 p.m. CST on Friday, Jan. 19. It was last updated with additional information at 2:34 p.m. CST on Friday, Jan. 19.
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OMAHA (DTN) -- Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.9 million head on Jan. 1, 2024. The inventory was 2% above Jan. 1, 2023, USDA NASS reported on Friday.
The inventory included 7.20 million steers and steer calves, up 2% from the previous year. This group accounted for 60% of the total inventory. Heifers and heifer calves accounted for 4.74 million head, up 2% from 2023.
Placements in feedlots during December totaled 1.70 million head, 4% below 2022. Net placements were 1.64 million head. During December, placements of cattle and calves weighing less than 600 pounds were 440,000 head, 600-699 pounds were 410,000 head, 700-799 pounds were 380,000 head, 800-899 pounds were 279,000 head, 900-999 pounds were 110,000 head, and 1,000 pounds and greater were 85,000 head.
Marketings of fed cattle during December totaled 1.73 million head, 1% below 2022.
Other disappearance totaled 60,000 head during December, 11% above 2022.
DTN ANALYSIS
"In the latest USDA Cattle on Feed report released Friday, the total inventory of cattle in commercial feedlots is reported at 11.93 million head, 102% of a year ago and spot-on with pre-report estimates," said DTN Contributing Analyst Rick Kment. "Even though total inventory is higher than a year ago, cattle on feed numbers fell 81,000 head from the previous report in December. This is important, as it is the first time since August 2023 that inventory levels have dropped from month to month.
"Even though cattle on feed numbers remain well above a year ago and will likely continue to remain above last year's levels for several months, the ability to steadily and actively work out of the burdensome supplies in feedlots through the fall and early winter months seems to be giving even more support to the entire cattle market complex.
"Cattle placed in feedyards during December came in slightly above pre-report estimates, but well within analysts' range of estimates. Cattle placements are listed at 96% of a year ago, at 1.7 million head. Even though this is above last year's levels, it is still 169,000 head fewer than were placed in yards during November. This is a further indication that feedlot placements have reached their seasonal peak over the past couple of months and will likely revert to a more normal placement routine through early 2024. Placement numbers are also at their lowest point since the end of July 2023, helping to create optimism for the feeder cattle market moving forward.
"Cattle marketed in December continue to lag both year-ago and previous-month levels but seem to be stabilizing over the past couple of months, which should help to create some additional stability in the market.
"Overall, the Jan. 1 Cattle on Feed report is expected to be seen as generally neutral Monday morning when traders get their first chance to trade report numbers. Given that the report's results were fractionally within estimated ranges, it will likely help to create some additional confidence and stability in the market. However, the lack of significant changes to both cattle inventory and new placements in the report may limit some follow-through buying in the coming days and could unwind some of the pre-report buying activity seen in both live cattle and feeder cattle markets over the past few days," Kment said.
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DTN subscribers can view the full Cattle on Feed reports in the Livestock Archives folder under the Markets menu. The report is also available at https://www.nass.usda.gov/….
| | USDA Actual | Average Estimate | Range |
| On Feed Jan. 1 | 102% | 102.2% | 101.4-102.5% |
| Placed in December | 96% | 95.4% | 91.5-98.0% |
| Marketed in December | 99% | 99.2% | 98.2-100.7% |
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