The June cattle on feed report was highly anticipated given the increase in packing capacity since May. There were wide ranges in all categories, but the USDA numbers all fell fairly close to the average analyst estimate.
All cattle and calves on feed for beef production in the United States fed in feedlots with capacity of 1,000 or more head totaled 11.7 million head on June 1, 2020. The inventory was slightly below June 1, 2019. This is the second highest June 1 inventory since the series began in 1996.
Cattle going into feedlots or placements during May totaled 2.04 million head. That is 1% below 2019. Net placements were 1.97 million head. During May, placements of cattle and calves weighing less than 600 pounds were 375,000 head, 600-699 pounds were 305,000 head, 700-799 pounds were 485,000 head, 800-899 pounds were 532,000 head, 900-999 pounds were 235,000 head, and 1,000 pounds and greater were 105,000 head.
The marketing of fed cattle during May totaled 1.50 million head. 28% below 2019. Cattle marketed was the lowest for
May since the series began in 1996.
Other disappearance totaled 66,000 head during May, 8 percent below 2019.
|June Cattle on Feed||June 2020||% to 2019||Est.|
|On Feed||11.7 mln hd||100.00%||99.00%|
|Placed||2.04 mln hd||99.00%||97.50%|
|Marketed||1.50 mln hd||72.00%||73.80%|
Jerry Stowell, Country Futures, says the initial look at the report may be somewhat negative. Stowell stresses on the marketing number to remember there were 2 less business days in May.
Hear Stowell’s full comments here: