Leffler Calls March Cattle On Feed Numbers Neutral

No surprises were found in the latest cattle on feed numbers. That’s according to Tom Leffler of Leffler Commodities, as the report came in close to pre-report estimates. Radio Oklahoma Network’s Leslie Smith got reaction from Leffler after the report came out on Friday.

The U.S. Department of Agriculture estimated 10.7 million head of cattle on feed as of March 1, 2015. That was down one percent from a year ago. Leffler said this is the second largest March on feed number of the past 16 years and third largest monthly on feed number for the past 11 months. Texas was down one percent, while Nebraska and Kansas was up one percent versus a year ago.

February placements totaled 1.52 million, down eight percent for 2014. Leffler said this was the third smallest February placement number of the past 20 years and third smallest monthly placement number of the past 62 consecutive months. He said Texas was down 30 percent on placements in February, Nebraska was down nine percent and Kansas was up six percent versus a year ago.

Placements for cattle weighing less than 600 pounds totaled 330,000, down 15.4 percent, 600-699 pounds came in at 270,000, down 18.2 percent, 700-799 pounds totaled 388,000, down 7.2 percent and 800 pounds and heavier were 535,000 was up 2.9 percent versus a year ago.

Marketings of fed cattle for February totaled 1.52 million head, down two percent from 2014. Leffler said this was down 9.9 percent below the five year average and the smallest February marketing numbers since 1996. Texas was down 12 percent, Nebraska was up three percent and Kansas was up 13 percent on marketing numbers compared to a year ago.

With this neutral report, Leffler does not anticipate much market reaction on Monday morning. He said the report shows cattle numbers are tight, but exports are down due to the labor dispute in the ports in the Pacific Northwest and the stronger U.S. dollar. Beef imports have also increased. Leffler said beef continues to be priced high and there is increased competition from less expensive pork and poultry.