Sale barns continue to see record-high prices
WASHINGTON, D.C. – Placements (and prices) grabbed headlines in the most recent USDA Cattle on Feed Report issued Friday, March 21, 2025.
Expecting higher placements due, in part to Mexican cattle imports resuming following the import ban because of the New World screwworm case found in Mexico and frigid weather that kept cattle out of sale barns and feedlots for a good week in February, the exact opposite happened.
That has to be taken into consideration when comparing February placements from year to year. The 18% drop this year is bigger than it would have been had it been a more normal February this year.
But, if as some suspect, heifer retention is beginning in earnest, that means fewer cattle will be available for placements down the road. Which means supplies could get even tighter.
The cash market was on fire in all four reporting regions. Trade in live cattle on Friday created new, historic all-time highs in the nearby April contract on live cattle But then the in last hour of trade, a sell-off cut $2 off of that.
Cattle on Feed Report numbers were close to average pre-report estimates, implying tighter supplies of cattle in the coming months and could be seen as supportive to prices, but that will also depend on sustained domestic and export demand. Analysts are calling the report bullish.
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.6 million head on March 1, 2025. The inventory was 2 percent below March 1, 2024.
Placements in feedlots during February totaled 1.55 million head, 18% below 2024. Net placements were 1.49 million head.
During February, placements of cattle and calves weighing less than 600 pounds were 295,000 head, 600-699 pounds were 275,000 head, 700-799 pounds were 415,000 head, 800-899 pounds were 389,000 head, 900-999 pounds were 130,000 head, and 1,000 pounds and greater were 50,000 head.
Marketings of fed cattle during February totaled 1.63 million head, 9% below 2024.
Other disappearance totaled 60,000 head during February, 7% above 2024.
