USDA’s Cattle on Feed Report showed all three categories on the negative side of the average pre-report trade guesses. While down 3.4% from year-ago, the total number of cattle in feedlots on June 1 came in slighlty higher than anticipated thanks to greater-than-expected Placements and fewer-than-expected Marketings last month.
COF Report | USDA | Average | Range |
% of year-ago levels
| |||
On Feed | 97 | 96.5 | 94.3-97.6 |
Placements | 98 | 95.9 | 84.3-99.8 |
Marketings | 97 | 97.9 | 97.0-101.1 |
A weight breakdown of placements last month shows great disparity between the movement of lighter and heavier weight calves into feedlots. Obviously, there was enough backgrounding of calves during late winter/early spring to push heavyweight placements up significantly. But tight calf supplies continue to limit the number of lighter calves available to place on feed. During May, lightweight placements dropped 25%, 6-weight placements were down 16.7%, 7-weight placements increased 4.7% and heavyweight placements rose 19.6%.
With all three categories on the bearish side of their respective average pre-report trade guesses, the data gets a negative read. But with feedlot numbers continuing to trend well below year-ago, the report is not bearish.
