Cattle On Feed Numbers Move Higher

Last week's USDA cattle on feed report puts May placements of cattle in feed lots down 7% from last year. 
Marketing of fed cattle is up 25% from last year's COVID situation. Total feed lot inventory June first, 11.7 million head, almost exactly what it was this time a year ago.

"This was very close to what industry analysts were expecting," noted USDA Analyst, Shayle Shagam. He added the feedlot inventory numbers are second highest June 1 number on record. Shagam highlighted another number that might give us a clue as to what the future may hold.

"The number of cattle on feed over 150 days is a little bit higher than it has been historically though not as high as it was last year when we went through extraordinary circumstances. And those cattle will have to be moved so there could be some little bit of downward pressure on price going forward."

Right now, fed cattle prices are higher than they were in may; much higher than 2020. Shagum said two factors will determine what happens next: corn prices and what happens with the drought.

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