Cattle on Feed Report: Mostly Neutral
The On Feed and Placements categories were right in line with the average pre-report guesses at 97% and 95% of year-ago, respectively. Marketings came in a little stronger than anticipated at 96%, which topped the highest pre-report guess. The July 1 U.S. feedlot inventory was down 371,000 head from the beginning of June and 342,000 head under year-ago.
| COF Report | USDA | Average | Range |
| % of year-ago levels | |||
| On Feed | 97 | 97.0 | 96.0-97.7 |
| Placements | 95 | 94.9 | 89.3-99.8 |
| Marketings | 96 | 94.7 | 93.4-95.5 |
The breakdown of calves placed into feedlots in June signals improved pasture conditions in many areas are guiding those decisions. The placement of lightweight and 6-weight calves was down 31.5% and 27.5% from year-ago, while 7-weight and heavyweight calves were placed at a 6.4% and 26.5% greater clip than year-ago last month. Because of the generally improved pasture conditions, ranchers are keeping cattle on grass longer and delaying the movement into feedlots as long as possible.
The report data is mostly neutral, though the Marketings category was on the friendly side compared to pre-report expectations. This should support nearby live cattle, but traders will likely wait on confirmed lows in the boxed beef and cash cattle markets before actively pumping money into the long side of futures.
