WASHINGTON, DC – USDA’s latest cattle on feed report, released Friday, confirmed what many in the industry expected; the highest June 1 inventory since the report first premiered 36 years ago (1996).
Officially, 11.8 million head of cattle were on feed in the U.S., 101.2 percent compared to last year while placements during May were 97.9 percent of last year, and marketings were 102.4 percent compared to 2021.
The monthly report showed placements for May at 1.87 million head, slightly lower than the trade expectations. Analysts with the CME Group explain that the report is bullish for the October cattle contract. “The report is supportive due to low placements which means an even tighter supply into the 4th quarter. The reported news is bullish for October and December Cattle.”
Marketings of fed cattle during May totaled 1.91 million head, also under trade expectations and other disappearance totaled 76,000 head during May, 13 percent above 2021.
(SOURCE: All Ag News)
