Market News & Headlines >> U.S. Feedlot Inventory Larger than Expected
Last Friday’s monthly Cattle-on-Feed report from USDA had negative news for the cattle market as it pegged the June 1 feedlot inventory near the high end of expectations on larger-than-expected May feedlot placements.
USDA reported a June 1 U.S. feedlot inventory of 11.553 million head, 104.1% larger than a year earlier, compared with trade estimates that averaged 103.4% in a range from 102.8%-104.4%. The feedlot inventory was the largest on record for June 1 in the current USDA data series dating back to 1996.
May feedlot placements were pegged by USDA at 2.124 million head or 100.2% of a year earlier, compared with trade estimates that averaged 95.6% in a range from 91.9%-100.8%. May placements were the largest in 11 years.
USDA pegged May feedlot marketings at 2.056 million head or 105.4% of a year earlier compared with trade estimates that averaged 105.1% in a range from 103.9%-105.7%. May marketings were the largest in 10 years.
The USDA data helped send cattle futures sharply lower on Monday, with August futures falling their daily limit on expectations for ample summer cattle supplies, while the larger-than-expected placements weighed heavily on the fall futures contracts.