Friday’s USDA-NASS Cattle on Feed report pegged the Feb. 1 feedlot inventory of those with 1,000 or more capacity at 11.716 million head, down 0.7% from a year ago.
January fed cattle marketings were 101.4% of one year ago and placements were 101.7% of last year.
The report also contained a summary of 2024 feedlot production and the structure of the feedlot industry coming into 2025, said Derrell Peel, Oklahoma State University livestock marketing specialist in a letter called Cow-Calf Corner.
PERCENT OF CAPACITY DECLINES
The cattle on feed as a percentage of feedlot capacity on Jan. 1, was 68.7%, down from 69.8% in 2024 and from the recent peak of 70.4% in 2022, Peel said.
For the past 15 years, feedlot inventories averaged 66.7% of the feedlot capacity, he said. The percentage dropped significantly from 2014-2017 during herd expansion.
Ever tighter feeder cattle supplies and the prospect of heifer retention for herd rebuilding mean the percentage is likely to decrease in the future, Peel said.
TOTAL ON FEED INCLUDES SMALL LOTS
The total US feedlot inventory on Jan. 1, was 14.297 million head, including 2.474 million head in feedlots with capacities less than 1,000 head, Peel said. Since cattle inventories peaked in the mid-1970s, feedlot inventories have represented a growing percentage of total cattle inventories.
Feedlot inventories represented 16.5% of total cattle inventories on Jan. 1, down fractionally from the peak of 16.6% last year, he said.
A total of 2,105 feedlots with capacity of 1,000+ head (included in monthly Cattle on Feed reports) accounted for 82.7% of the Jan. 1 feedlot inventory and 87.2% of total feedlot production in 2024, Peel said.
A total of 24,000 feedlots with less than 1,000 head capacity accounted for 17.3% of feedlot inventory on Jan. 1 and 12.8% of total feedlot marketings (or 3.180 million head) in 2024, Peel said. This left them with 2.474 million head on Jan. 1.
Feedlots with capacities of more than 50,000 head made up 3.8% of feedlots of more than 1,000 head capacity but accounted for 34.8% of inventory and 35.1% of marketings last year, he said. More than 50% of feedlot inventories on Jan. 1 and annual marketings in 2024 were in feedlots of more than 32,000 head capacity, 6.9% of feedlots with 1,000+ head.
The estimated total feedlot capacity of 1,000 or more head on Jan.1, was 17.2 million head, up fractionally from the previous year, Peel said. Total feedlot capacity has not changed significantly in recent years and has averaged 17.13 million head since 2011.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $199.80 per cwt to $206.00, compared with last week’s range of $202.97 to $210.18 per cwt. FOB dressed steers, and heifers went for $315.50 per cwt to $318.26, compared with $318.80 to $327.62.
The USDA choice cutout Tuesday was up $0.59 per cwt at $314.32 while select was up $0.16 at $304.13. The choice/select spread widened to $10.19 from $9.76 with 117 loads of fabricated product and 28 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $375.68 per cwt, and 50% beef was $118.02.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.27 to $1.38 a bushel over the Mar corn contract, which settled at $4.79 3/4, down $0.02 3/4.
The CME Feeder Cattle Index for the seven days ended Monday was $279.44 per cwt, up $0.07. This compares with Tuesday’s Mar contract settlement of $274.22, up $1.92.