Cattle on Feed Report     01/23  15:20

Jan. 1 Cattle on Feed Down 3% From Year Ago, Marketings Up 2%

By DTN Staff

                      USDA Actual   Average Estimate*      Range
On Feed Jan. 1            97%            96.8%        96.0-97.6%
Placed in December        95%            92.7%        88.0-95.4%
Marketed in December     102%           101.7%      100.0-102.5%
* Estimates compiled by Dow Jones.

This article was originally published at 2:06 p.m. CST on 
Friday, Jan. 23. It was last updated with additional information 
at 3:21 p.m. CST on Friday, Dec. 23.

**

OMAHA (DTN) -- Cattle and calves on feed for the slaughter 
market in the United States for feedlots with capacity of 1,000 
or more head totaled 11.5 million head on Jan. 1, 2026. The 
inventory was 3% below Jan. 1, 2025, USDA NASS reported on 
Friday.
 
The inventory included 7.02 million steers and steer calves, 
down 3% from the previous year. This group accounted for 61% of 
the total inventory. Heifers and heifer calves accounted for 
4.44 million head, down 3% from 2025.

Placements in feedlots during December totaled 1.55 million 
head, 5% below 2024. Net placements were 1.50 million head. 
During December, placements of cattle and calves weighing less 
than 600 pounds were 365,000 head, 600-699 pounds were 360,000 
head, 700-799 pounds were 355,000 head, 800-899 pounds were 
274,000 head, 900-999 pounds were 115,000 head, and 1,000 pounds 
and greater were 85,000 head.

Marketings of fed cattle during December totaled 1.77 million 
head, 2% above 2024.

Other disappearance totaled 58,000 head during December, 2% 
below 2024.

DTN ANALYSIS

"Although Friday's Cattle on Feed report didn't reveal anything 
too wild or out of the norm, the slight difference between the 
actual report data and what was estimated beforehand was 
different enough that it's likely that on Monday when traders 
first get an opportunity to trade the report data, they'll find 
the report to be neutral at best," said DTN Livestock Analyst 
ShayLe Stewart. 

Stewart said it has become customary to expect on-feed numbers 
to be slightly lower than compared to a year ago, for placements 
to be the report's wild card, and for marketings to be lower, as 
well, as there simply aren't as many cattle on feed, and they're 
spending more time on feed. 

Friday's report wasn't that clear and simple, though, she said.
 
"First, the total number of cattle on feed was slightly (and by 
slightly, I do mean by a thin, thin margin of 0.20%) higher than 
pre-report estimates. This isn't a big, noteworthy discrepancy, 
but when you take the rest of the report into consideration, it 
does play a role," Stewart said. "To put the biggest feeding 
states into perspective: Kansas sat steady with its cattle on 
feed inventory compared to a year ago, but the total number of 
cattle on feed in Texas was down 9% compared to a year ago, 
Nebraska was up 2% compared to a year ago, Iowa was up 5% 
compared to a year ago, but Colorado was down 15% compared to 
year ago.
 
"Next came the placement data, which showed a total of 1,554 
million head of cattle placed during December 2025 -- down 5% 
from 2024. Overall, seeing a placement figure come in 5% lower 
than the previous year is usually viewed as bullish news. But 
pre-report estimates believed the data would be close to 92% or 
93% of a year ago. And oddly enough, Texas showed a 10% increase 
in its placements alone compared to a year ago.
 
"And last but not least -- as it's potentially the most bullish 
factor about the report -- was the quarterly steer and heifer 
breakdown of the total number of cattle on feed. As of Jan. 1, 
the report indicated that there were 7,015 million head of 
steers on feed and 4,435 million head of heifers on feed. That 
means that the total number of heifers on feed accounts for 
38.7% of the total number of cattle on feed, indicating that 
plenty of females are still making their way to the feedlot and 
aren't being kept back for rebuilding purposes.
 
"Overall, Friday's Jan. 1 Cattle on Feed report will likely be 
absorbed as a neutral report, at best, as although it's good to 
see marketings stronger than a year ago, there were slightly 
more cattle placed than originally assumed."

**

DTN subscribers can view the full Cattle on Feed reports in the 
Livestock Archives folder under the Markets menu. The report is 
also available at https://www.nass.usda.gov/.