The latest USDA Cattle on Feed report pegs May 1 feedlot inventories at 11.725 million head, 104.7% of last year. A more useful comparison is to 2019 levels with the 2021 May 1 total down 0.7% from May 2019.

Preliminary March 2021 federally inspected slaughter volume was up by 75,000 head from a year ago, totaling 2.95 million head, due to one extra slaughter day relative to March 2020.

The April USDA Cattle on Feed report requires careful interpretation. The typical year-to-year comparisons are mostly meaningless because of the pandemic disruptions affecting markets one year ago.

The severe winter event in mid-February that dipped as far south as Texas disrupted packing plant operations, further-processing facilities and delivery of cattle to plants.

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.

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.