USDA latest Cattle on Feed Report indicates a stronger pace to both placements in feedlots and cattle marketings, even with a year over year reduction in inventory.

Participants: Rod Bain and livestock analyst Mike McConnell

Transcript

Another reduction in US cattle and calves and feedlots reported.

USDA Livestock Analyst Mike McConnell says for the February cattle on feed report, "The overall inventory is being 11.72 million, which is one percent lower than a year ago."

Despite the lower year-over-year inventory, there are signs of both increased placements of cattle and feedlots in January, as well as marketings for fed cattle for the month.

"For feedlots that are more than a thousand head, they placed 1.82 million head of cattle for feeding.

That's 2 percent higher than a year ago.

For marketing, they market 1.87 million head of cattle, which is 1 percent higher than a year ago.

McConnell says strong placement pace in January occurred despite the import of Mexican cattle not taking place during the month.

The pace driven by high cattle prices and strong demand.

I think overall looking at the published industry expectations for what outside analysts were expecting this report, all the expectations were first squarely in line with what this report came out.

I'm Rod Bain reporting for the U.S. Department of Agriculture in Washington, D.C.