USDA estimated there were 11.583 million head of cattle in large feedlots (1,000-plus) as of June 1, down 7,000 head (0.1%) from year-ago but 152,000 head more than the average pre-report estimate implied. May placements topped year-ago by 4.3%, whereas traders expected a 1.5% decline. Marketings increased 0.2% from last year, slightly less than expected.
Cattle on Feed Report | USDA | Average Estimate (% of year-ago) |
On Feed on June 1 | 99.9 | 99.0 |
Placements in May | 104.3 | 98.5 |
Marketings in May | 100.2 | 100.5 |
Placements topped year-ago in each of the weight categories. Placements increased 3.9% for lightweights (under 600 lbs.), 5.0% for 6-weights, 1.0% for 7-weights, 4.7% for 8-weights, 7.0% for 9-weights and 12.5% for heavyweights (1,000-plus lbs.). Placements increased 50,000 head in Texas, 45,000 head in Nebraska and 4,000 head in “other states,” while they declined 10,000 head in Kansas and 5,000 head in Colorado compared to last year.
The data is mildly negative compared to the pre-report estimates, but not enough to have a major market impact. Focus will remain on the cash cattle market following its recent all-time highs.