US cattle feedlot placements drop 18% in February; second lowest since 2015

US cattle put in feedlots in February totaled 1.554 million head, down 17.8% from 1.890 million head in February 2024, the USDA said in its Cattle on Feed report released late March 21.

"February placements were down harder than the average of the industry analyst expectations," said Caleb Hurst, beef market analyst for S&P Global Commodity insights. 'This percentage of decrease is a little inflated due to 2024 being a record high for placements in February, but this was still the smallest placement number we have seen for February since 2015."

Marketings of fed cattle, or outflows of cattle from feedlots, during February, totaled 1.633 million head, down 8.9% from February 2024, the USDA showed. "The smallest marketing number for February since 2016," according to Caleb Hurst.

Despite the drop in marketings the low placements weighted in the final cattle on feed number.

The number of US cattle on feed totaled 11.577 million head on March 1, down 1.2% from 11.716 million head on Feb. 1, and 2.2% from the 11.838 million head on March 1, 2024, the USDA said in its Cattle on Feed report. The latest total of US cattle on feed was 2% down from 11.838 million head in the year-ago period.

"We are expecting the more significant tightening later this spring and early this summer and staying below year-ago levels for the remainder of the year," Hurst added.

Cattle placement levels are expected to fall below year-ago levels for most of 2025, as weekly imports of Mexican feeder cattle have averaged about 5,000 head per week, down from approximately 20,000 head per week before the outbreak of screwworm in Mexican cattle. Tighter supplies are anticipated, sources said.

Prices

The market will continue to monitor the rate of cattle slaughter and any potential policy changes, including tariffs, US import quota reductions, and US port fees on Chinese vessels, to better define cattle and beef prices, sources added.

Platts, part of S&P Global Commodity Insights, assessed the price of 90CL beef CIF US at $6,724/mt, or $3.05/lb, for 30-60 day shipment period March 24, down $154/mt, or 2.2%, week on week; but up $220/mt, or 3.4%, from Feb. 3, and up $264/mt, or 4.1% during 2025.

According to the USDA, placements are steers and heifers put into a feedlot, fed a ration to produce a carcass that will grade select or better, and are intended for the slaughter market.

Cattle on feed are steers and heifers being fed a ration of grain, mostly corn, silage, hay and/or a protein supplement such as dried distillers grains with solubles or soybean-meal, ahead of slaughter. It excludes cattle held back for later sale to feedlots, and only feedlots with a capacity of 1,000 animals or more are considered.

The cattle on feed and placements data are indicators of the US supply of beef and US demand for corn, soybean meal and DDGS.