News

Major cattle on feed categories up on year

The USDA says cattle placements during May 2018 topped most pre-report expectations. Ahead of the report, most analysts were expecting a decline after the very large May 2017 placements, but dry conditions in many of the major feeding areas probably contributed to the year to year increase.

Placements were up slightly on the year at 2.124 million head, with most of those cattle weighing less than 800 pounds. By weight, placements of cattle weighing less than 600 pounds were 445,000 head, with 600 to 699 placements at 340,000 head and 700 to 799-pound placements were 480,000 head, while 800 to 899-pound placements were 524,000 head, 900 to 999-pound placements were 235,000 head, and placements of cattle weighing 1,000 pounds and heavier were 100,000 head.

Marketings were 5% above a year ago 2.056 million head, matching the average guess, and the total number of cattle on feed was 3.5% higher at 11.553 million head, near the high end of estimates.

Other disappearances were up 5% at 73,000 head.

The numbers could be considered neutral to slightly bearish because of the placements figure.