February 28

2/28 - In Friday’s Cattle on Feed report, the USDA said feedlot inventories, at 12.2M head on Feb 1, were up 0.8% from a year ago. New placements onto feedlots in January were down 1.2% from a year ago, following 3 straight months of large, year-over-year, liquidation-driven placement gains. Heifers (breeding stock) in feedlots accounted for 38.8% of total inventory, up 2.4% from 2021. When the percentage of heifers in feedlots exceeds 36%, it indicates that producers are reducing herd numbers. Drought intensified in TX and OK this winter, so herd liquidation will likely continue in 2022. In Feb’s WASDE, the USDA projected a 2.0% decline in beef output for 2022. Cattle futures at $139.27/cwt (2/25) are 19% above a year ago. April 2022 futures are trading at $141.92; April 2023 at $152.60.