The first USDA Cattle on Feed Report of 2014 shows a five percent smaller set of cattle in US Feedlots as of January first of this year versus January 1, 2013. While that shows the tightness of the US beef supply, it may still not be enough of a reduction to satisfy the trade, since analysts were looking for a six percent cut in feedlot numbers on Friday.

Placements were also higher than what the pre report guesses were indicating- with the USDA number one percent larger than a year ago (December 2013 versus December 2012) while the analysts had an average guess of two percent less than a year ago.

According to the official text of the Friday report: Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on January 1, 2014. The inventory was 5 percent below January 1, 2013. The inventory included 6.78 million steers and steer calves, down 4 percent from the previous year. This group accounted for 64 percent of the total inventory. Heifers and heifer calves accounted for 3.73 million head, down 8 percent from 2013.

Placements in feedlots during December totaled 1.68 million, 1 percent above 2012. Net placements were 1.60 million head. During December, placements of cattle and calves weighing less than 600 pounds were 485,000, 600-699 pounds were 420,000, 700-799 pounds were 391,000, and 800 pounds and greater were 385,000.