Recent Trend of Lower Placements Likely Continued in May

Posted on 06/20/2018 12:09 PM

Traders expect USDA’s Cattle on Feed Report to show the number of calves placed in feedlots trended well under year-ago for a third straight month in May. After aggressively placing cattle into feedlots through winter, calf supplies are tighter. At the same time, marketings remained strong last month, as discounted deferred live cattle futures have encouraged feedlots to pull marketings forward. Feedlot inventories remain well above year-ago levels, but the combination of lower placements and higher marketings is shrinking the percentage increase in feedlot supplies compared to last year.  

Cattle on Feed Report expectations

Avg. Trade Estimate

(% of year-ago)

Range

On Feed June 1

103.4

102.8-104.4

Placements in May

95.6

91.9-100.8

Marketings in May

105.1

103.9-105.7

 

We will have coverage of the report online and in “Evening Report” Friday after its 2:00 p.m. CT release.

 

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