USDA estimated there were 11.552 million head of cattle in large feedlots (1,000-plus head) on June 1, down 349,000 head (2.9%) from year-ago but 114,000 head more than the average pre-report estimate implied. May placements increased 4.6%, whereas traders anticipated a 1.7% rise. May marketings rose 1.7%, which was basically in line with expectations.
Cattle on Feed Report | USDA | Average Estimate (% of year-ago) |
On Feed on June 1 | 97.1 | 96.6 |
Placements in May | 104.6 | 101.7 |
Marketings in May | 101.7 | 101.6 |
Placements increased in each of the weight categories except for 9-weights, which declined 2.3% from year-ago. Placements rose 4.1% for lightweights (under 600 lbs.), 5.6% for 6-weights, 9.3% for 7-weights, 6.5% for 8-weights and 6.7% for heavyweights (1,000-plus lbs.). Nebraska accounted for 55,000 head of the 86,000-head increase in placements, with Kansas up 15,000 head, Colorado up 10,000 head and “other states” up 11,000 head. Texas placed 5,000 fewer cattle than year-ago last month. Based on where the placements increased, drought was a factor. But some of the rise was also driven by bigger imports of feeder cattle.
This marked the 10th straight month of year-over-year declines in feedlot inventories. While the placements suggest second-half supplies won’t be as tight as once expected, feedlot numbers will continue to decline relative to year-ago.