News

USDA: cattle placements below most estimates

The USDA says cattle placements during April were lower than what many analysts were expecting.

Placements were up 9% on the year at 1.842 million head, mostly cattle weighing between 700 and 900 pounds, below expectations with weather in some of the major feeding areas keeping in-movement limited and tightening supplies later in the year. These cattle will be marketed in late summer and fall. By weight, placements of cattle weighing less than 600 pounds were 355,000 head, 600 to 699 pound placements were 250,000 head, and placements in the 700 to 799 pound category were 447,000 head, while 800 to 899 pound placements were 495,000 head, 900 to 999 pound placements were 210,000 head, and placements of cattle weighing more than 1,000 pounds were 85,000 head.

Marketings were 6% higher at 1.928 million head, near the low end of estimates, but enough to keep many feedlots current.

The total number of cattle on feed in the U.S. on May 1st was the highest monthly total since the series of reports started at 11.818 million head, 2% higher than on May 1st, 2018.

The numbers look neutral to supportive, especially for deferred cattle contracts.