Cattle Inventories Continue To Go Down, Prices Remain Elevated

When looking at the USDA’s June Cattle on Feed Report, inventories are going down, but the market hasn't seen as much cattle marketed, which is keeping the inventory levels from falling even further.  Livestock analyst Michael McConnell said when it comes to numbers from the month of May.

“On June 1st, there was 11.44 million head of cattle in those feedlots, which is 1% lower than a year ago," he noted.  "That was the result of placements during the month of May totaling 1.89 million head which was 8% lower than a year ago.  Marketings came in at 1.76 million head, which was 10% lower than a year ago, although if you account for one fewer slaughter day was about 6% lower in this past May versus last May.”

Tighter Inventories Helping Beef Prices

“Whether it be for feeder cattle or fed cattle or for beef at the wholesaler retail level. So, overall those tight supplies are resulting in support of pricing all throughout the value chain.”

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