INDUSTRY NEWS

The February Cattle on Feed report from the USDA showed a Feb. 1 feedlot inventory of 12.1 million head, 101.5% of one year ago. January placements were 2.017 million head, up 3.2% year over year.

For the final quarter of 2020, beef production was lowered 80 million pounds on fewer-than-expected cattle slaughtered in December. This decline was particularly driven by fewer steers and heifers in the slaughter mix. As a result, 2020 beef production is forecast at 27.2 billion pounds, almost unchanged from 2019 production levels.

On Feb. 7, 2021, Sen. Amy Klobuchar (D-Minnesota), chair of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, filed the Competition and Antitrust Law Enforcement Reform Act.

The current outlook communications for the cattle and beef markets in 2021 are commonly optimistic – bullish. The underlying market fundamentals support this position.

The Cattle Inventory report provides lots of information but does not answer one important question: What is the inventory of feeder cattle available to be placed in feedlots for finishing?

The latest Cattle on Feed report was released Jan. 22. Included in this report were placements and marketings for December 2020 and the on-feed total for Jan. 1, 2021.