The June Cattle on Feed report released by the USDA has generated interest due to an unexpected development. While the report indicated a 3% decrease in overall on feed numbers, the notable highlight was the 5% increase in cattle placements in May 2023 compared to the previous year.
According to the USDA, the total inventory of cattle and calves on feed for the slaughter market in the United States, specifically in feedlots with a capacity of 1,000 or more head, amounted to 11.6 million head on June 1, 2023. This figure represented a 3% decline from June 1, 2022.
During May, placements in feedlots reached 1.96 million head, reflecting a 5% increase compared to the same period in the previous year. Net placements accounted for 1.88 million head. The report also provided a breakdown of placements based on weight categories.
Market analysts expressed surprise and concern regarding the higher-than-expected placements, which exceeded pre-reported estimates. However, they emphasized that market dynamics are subject to fluctuations, and the increase may be attributed to factors such as favorable market conditions and producers' marketing decisions.
Despite the rise in placements, the total on-feed number remained lower than the previous year, reaching its lowest level in six years at 11.552 million head as of June 1. Analysts maintain an optimistic outlook, anticipating stronger cash cattle prices in the third and fourth quarters of 2023.
Source : wisconsinagconnection