The monthly Cattle on Feed report showed February placements at 1.554 million head, down 17.78% from last year and below the average trade estimate. February marketings were down 8.92% at 1.663 million head, while March 1 on feed data came in at 11.577 million head, down 2.2% compared to the level last year and below the estimate of a 1.7% decline. Live cattle futures fell into the Friday close, with nearby losses of $1.52 to $2.47, as traders lightened up ahead of the report. Cash trade was on the move, up $7 to $8 from last week in the South at $210, while Northern business came in at $212 to $216, a $6 to $9 improvement week over week. Feeder cattle futures also pulled back, closing down $1.87 to $4, though March was still up $4.50 on the week.
Feeder cattle futures pulled back despite strong cash trade, as placements decline signals reduced future supply.
Placements down 17.78% and on-feed numbers below estimates indicate tighter future supply, but futures fell on report release.