Larger-than-generally expected January placements boost Feb. 1 on-feed inventory above expectations, which will be bearish for fed cattle trade.
Friday's USDA Cattle on Feed Report points to tighter supplies, but not as tight as traders generally expected in advance of the report.
Placements in feedlots during January totaled 2.03 million, 9% above 2013. Traders expected roughly a 2.6% hike in placements. Larger-than-expected January placements pushed the Feb. 1 cattle on feed inventory to 10.760 million head, down 3% from Feb. 1, 2013. Traders expected the on feed inventory to be down about 5.2%.
January marketings, at 1.788 million, were 5% below 2013, not far out of line with the 4.6% reduction traders expected.
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