Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head on June 1, 2019. The inventory was 2% above June 1, 2018. This is the highest June 1 inventory since the series began in 1996, USDA reported on Friday.
Placements in feedlots during May totaled 2.06 million head, 3% below 2018. Net placements were 1.99 million head. During May, placements of cattle and calves weighing less than 600 pounds were 370,000 head, 600-699 pounds were 305,000 head, 700-799 pounds were 500,000 head, 800-899 pounds were 539,000 head, 900-999 pounds were 235,000 head, and 1,000 pounds and greater were 115,000 head.
Marketings of fed cattle during May totaled 2.07 million head, 1% above 2018. Other disappearance totaled 72,000 head during May, 1% below 2018.
“June 1 cattle on feed data appears to be neutral to slightly bearish following slightly higher overall numbers of cattle in feedlots during the month of May,” said DTN Analyst Rick Kment. “Cattle on feed levels increased 2% from a year ago, fractionally above expected levels, but well within analysts’ ranges. Cattle placed in feedlots during May is 97% of a year ago, but nearly 4 percentage points above pre-report estimates. This is expected to put slight pressure on the cattle complex Monday.
“Given the already weak market structure of the cattle futures complex, these numbers are not expected to be a significant factor, but will add another layer of market concern to the entire complex.”
The report is also available at https://www.nass.usda.gov/….
Mike Zuzolo, Global Commodity Analytics, breaks down the report here: http://bit.ly/2N1XRpf
|USDA Actual||Average Guess||Range|
|On Feed June 1||102.0%||101.3%||101.0-101.9%|
|Placed in May||97.0%||95.9%||93.2-98.9%|
|Marketed in May||101.0%||100.8%||99.8-101.1%|