Cattle futures closed higher on the week despite lower trade on Friday. April live cattle traded $1.42 lower to $242 on Friday. Still, futures gained $1.37 on the week.

April feeders turned sharply lower but were able to pare some of their losses before closing just $2.60 lower at $365.05 per cwt. Prices also gained a modest $1.60 on the week. Feeders have traded higher for 12 of the past 13 weeks.

The Feb. 1 U.S. feedlot herd totaled 11.505 million head, down 1.8 percent year-over-year, according to the USDA’s Cattle on Feed report released Friday. The inventory continued to track below last year’s levels and the five-year average for much of the past year.

The USDA reported during the month of January that feedlot placements totaled 1.736 million head, down 4.7 percent. Placements were slightly on the lower side of expectations, providing a slightly bullish tilt.

The weight categories driving that decline were 600-699 and 700-799. Steady year-over-year placements of calves weighing under 600 pounds suggest that producers continue to pull calves forward to meet feedlot demand.

Monthly placement data continues to show tight feeder cattle supplies across the U.S.

January fed cattle marketings fell 13 percent from a year ago to 1.626 million head, aligning with market expectations. The large drop in marketings can be attributed to tight supplies, as well as longer days on feed, which explains record cattle weights.

Overall, Friday’s report seemed neutral for the market after showing no wild surprises in the feedlot inventory or placement numbers. The numbers continued to show a tight supply outlook for the U.S., which has kept beef supplies at historically low levels.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.