The cattle markets bring a mix optimistic and caution news. Fed cattle prices are at levels not seen since mid-2015. The substantial heifer composition of FI fed slaughter and the reasonably aggressive beef cow slaughter and liquidation clearly communicates the tightening future beef supplies.

Cattle and beef markets continue to show good and improving strength into 2022. The opening weeks of February communicate potential tightening of, most notably, feeder animal supplies into the summer.

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

The USDA NASS Cattle on Feed report for January was released Jan. 24. My take on the report is that it was reasonably neutral. Placements, marketings and on-feed numbers were all well within pre-report estimate ranges and were, in fact, very close to pre-report averages.

The past several months have seen considerable volatility in cattle and grain markets, and it is doubtful the volatility will fall off over the next several weeks. Repeated storms across the Upper Midwest have delayed a lot of corn planting that will likely become soybean plantings. The immediate forecast shows little prospects of drying out and heating up, and the continuous trade-related surprises … Well, at this point in time, I am less surprised. I would be surprised without the emergence of news or announcement, and a Cattle on Feed report. Let's talk about that.

The USDA Cattle on Feed report was released Friday, and the news was neutral to longer term bearish. Marketings matched pre-report expectations; on-feed inventories were slightly heavy but again close to expectations, while placements were above the highest estimate for the range of expectations.

We are a little better than halfway through getting this fall's calf crop marketed and the seasonal weakness in prices has been an eye-opener.

The USDA Cattle on Feed report released on Jan. 22 contains some surprises and is notably lacking news that the price trend established through the last half of 2015 would be reversed.

The USDA NASS (National Agricultural Statistics Service) September Cattle on Feed Report was released Friday, Sept. 18. The news was more of the same and one surprise. 2015 has displayed none of the price escalation of 2014, a persistent retreat from record-high prices and volatility.