Impact of Friday's "Cattle On Feed Report" plus Feeder Cattle Surge: Technically Toppy?

Cattle on Feed Report . . . released 1 p.m. MT Feb 23

Cattle on-feed as of February 1st came in slightly higher than expected at 100.4 % versus 100.1 % trade estimate, but viewed mostly neutral. Traders were expecting a very bullish feedlot placement number given severe cold temperatures in January disrupting cattle movement into feedlots. Traders expected placements at just 88.4 % of last year. But the surprise of this report was January placements at 92.6 %, 4.2 % higher-than-expected and considered bearish despite overall tightening feedlots numbers.  This is still an 8-year low in U.S. feedlot placements.