Cattle futures are off to a quiet start on Monday following the USDA’s latest cattle feedlot report. May feeder cattle futures traded about $1 higher following this morning’s open, trading at about $347.37 per cwt. June Live cattle were up 80 cents at about $234.
May feeder cattle futures faced pressure last week despite trading $7.20 higher. June live cattle futures were more resilient and finished $4.47 higher than the previous week. The contract had tested highs of the week before pulling back slightly into Friday’s close.
The cattle market has not benefited from a strong stock market since equities topped out in late January. Money managers remain heavily bullish on a net basis, though dramatically less so since funds hit a record net long at the start of the year.
The U.S. cattle feedlot inventory proved to be heavier than pre-report expectations on Friday, offering some bearish news for the market. The March 1 feedlot herd totaled 11.549 million head, down just 0.2 percent year-over-year, according to the USDA’s monthly Cattle on Feed report. That was a smaller decline than what was expected by a Bloomberg survey of analyst estimates. Longer days on feed likely contributed to the inventory being steady compared to a year ago.
Cattle feedlot placements also proved to be larger than expected. February placements totaled 1.611 million head, marking a 3.7 percent increase, compared to the expected 0.3 percent increase. That was also the first year-over-year increase since March 2025.
Colorado and Nebraska were the only two states that experienced year-over-year declines. Meanwhile, surprisingly large increases were seen in Arizona (41 percent), Texas (8 percent), and Oklahoma (11 percent). Iowa also saw an 11 percent increase.
When put into perspective, placements remain historically low. The number of cattle outside of feedlots also tracks ongoing trends of tight supplies.
February fed cattle marketings fell 6.8 percent from a year ago to 1.522 million head. That compares to a 7.6 percent decline expected by the Bloomberg survey, but was still the lowest for the month in about a decade.
High cattle prices have been slowing the marketing pace as packers work to capture what little margins they can. That trend has also contributed to longer days on feed.
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