Tighter cattle supplies and poor returns in feedlots resulting in low bids turned out a bullish cattle on feed report Friday, with placements that may be price-supportive later this year.
Cattle on feed numbered 10.9 million, 7% below last year's numbers.
Total placements in February were the lowest since the reports began in 1996, just 1.48 million head, which was down an astounding 14% from a year ago.
Marketing's of fed cattle were also down 7% from a year ago at 1.64 million head.
Analysts also think producers may also be holding back animals for breeding, hoping for better pastures later this year.