Market News & Headlines >> USDA Reports Should Confirm Shrinking U.S. Cattle Supplies
USDA is set to release both its monthly Cattle-on-Feed report and its semi-annual Cattle Inventory report on Friday afternoon and the two reports are expected to provide further evidence of shrinking U.S. beef cattle supplies.
The Cattle Inventory report is expected to show further liquidation of the overall U.S. cattle herd in part due to continued drought conditions in the U.S. Plains this spring. However, market participants will be on the look out for any signs that surging cattle prices have triggered a shift to expansion.
The July Cattle-on-Feed report is expected to peg June feedlot placement below a year earlier for the ninth time in 10 months.
Trade estimates of the July 1 feedlot inventory (feedlots over 1,000 head) average 97.7% in a range from 97.0%-98.9%. At the average of trade estimates, the feedlot inventory would total 11.079 million head and would be 261,000 head smaller than a year earlier.
Trade estimates of June feedlot placements average 98.4% of a year earlier in a range from 96.2%-102.7%. At the average of trade estimates, June placements would total 1.603 million head and would be 26,000 head smaller than a year earlier.
Trade estimates of June feedlot marketings average 95.1% of a year earlier in a range from 94.0%-96.0%. At the average of estimates, June marketings would total 1.960 million head and would be 101,000 head smaller than a year earlier.