Record Cattle Placements in February Boost U.S. Agricultural Prospects

The U.S. Department of Agriculture (USDA) has reported an unexpected surge in cattle placements for February, with numbers reaching 1.793 million head, a 10% increase from the previous year. This marks the highest February placements since record-keeping began in 1996, driven largely by favorable weather conditions across major feeding areas and the addition of an extra business day due to Leap Year.

February’s cattle marketings also saw a notable increase, climbing to 1.89 million head, 3% higher than the previous year. As of March 1st, the total cattle on feed across the U.S. reached 11.838 million head, marking a 1% increase. While the immediate implications for cash cattle prices, the futures market, and wholesale business appear neutral to bearish, the ultimate impact will hinge on the trajectory of beef demand.

State-specific data reveals varied trends, with Iowa experiencing a 2% increase in cattle on feed and an 18% rise in placements. Conversely, Kansas reported a slight 2% decrease in cattle on feed but saw a 7% increase in placements and marketings. Nebraska and South Dakota both reported growth in their cattle on feed and placements, reflecting a broader trend of optimism within the agricultural sector.