The combination of heavier-than-expected Placements and lighter-than-anticipated Marketings during May pushed the June 1 On Feed figure 2% above year-ago. With all categories coming in on the negative side of the average, pre-report guesses, this data is bearish for cattle futures.
Of the calves placed into feedlots last month, lightweights were up 25.3%; 6-weights up 2.8%; 7-weights up 10.4%; and heavyweights up 20% from year-ago levels. The surge in lightweight calf placements suggests some Plains’ producers are running out of grass, forcing more calves into feedlots. But the sharp rise in the number of heavyweight calves entering feedlots signals pasture conditions recently worsened after improvement earlier this spring. This surge in placements should limit calf movement into feedlots in the coming months as supplies are tight.
COF Report | USDA | Average | Range |
% of year-ago levels
| |||
On Feed | 102%
| 100.7 | 98.8-101.9 |
Placements | 115% | 114.2 | 99.4-118.6 |
Marketings | 101%
| 105.0 | 102.7-106.6 |
