Feedlot inventory drops from year-ago levels for 10th straight month
SDA estimated there were 11.204 million head of cattle in large feedlots (1,000-plus head) as of July 1, down 201,000 head (1.8%) from year-ago. June placements increased 2.7% from last year, while marketings declined 5.0%. As a result, the feedlot inventory didn’t drop quite as much as anticipated, but this still marked the 10th consecutive month of year-over-year-declines.
|
USDA |
Average Estimate (% of year-ago) |
|
|
On Feed on July 1 |
98.2 |
97.6 |
|
Placements in June |
102.7 |
98.1 |
|
Marketings in June |
95.0 |
95.2 |
Placements increased from year-ago levels in all of the weight categories except 8-weights (down 0.3%) and heavyweights (down 5.9%). Placements rose 6.4% in lightweights (under 600 lbs.), 1.9% in 6-weights, 2.7% in 7-weights and 5.7% in 9-weights. Kansas and Nebraska each increased placements 20,000 head during June, while “other states” rose 29,000 head. Placements declined 20,000 head in Texas and 5,000 head in Colorado.
The feedlot inventory consisted of 6.734 million steers, down 201,000 head (2.9%) and 4.47 million heifers, unchanged from year-ago.
While the placements number is negative, there’s nothing in this report that should cause sustained pressure on cattle futures, especially with the inventory data signaling beef supplies will continue to tighten.
