June Cattle on Feed Report Recap


USDA released their monthly Cattle on Feed report this Friday afternoon (Jun 21). Placements of cattle into feedlots with 1,000 head or larger capacity totaled 2.049 million head, 1.7% lower than May 2012 but 8.3% above the five year average from 2008-2012. Analysts had expected placements to be slightly smaller  by approximately 50,000 head. Further, marketings during May were below expectations at 1.948 million head, 3.4% lower than last year and 1.3 percentage points lower than expected. Collectively, this means more cattle are in feedlots than was expected. The total number of cattle on feed registered 10.736 million head June 1, 2013, 3.1% below last year’s amount but 0.4 percentage points more than anticipated.

Breaking down the number of placements show that, for the most part, heavier cattle were sent into feedlots durring May.  Across the board placements of cattle under 700 pounds was down 21.6%, while placements of cattle 800 pounds and up were 19.6% higher. These heavy placements will likely pressure the August and October futures contracts more severely; however, all contracts could suffer when markets re-open.

Summary of the June Cattle on Feed report:

Pre-report Estimates:
(1,000 head) vs. 2012 vs. 5-Yr Avg Average Range
Placed in May 2,049 -1.7% 8.3% -4.1% -15.7% -0.2%
Marketed in May 1,948 -3.4% -2.4% -2.1% -3.0% 1.1%
On Feed, Jun 1 10,736 -3.1% 0.0% -3.5% -5.7% -2.4%

Placements by state and weight group:

AZ CA CO ID IA KS NE
< 600 lbs. N/A N/A -14.3% N/A N/A -38.9% -28.6%
600-699 lbs. N/A N/A -33.3% N/A N/A -22.2% -8.3%
700-799 lbs. N/A N/A 11.1% N/A N/A 0.0% 0.0%
800+ lbs. N/A N/A 0.0% N/A N/A 29.6% 12.5%
TOTAL -30.6% 10.0% -5.6% 41.4% 10.2% -3.4% 0.0%
OK SD TX WA Other [1] U.S.
< 600 lbs. N/A N/A -27.3% N/A -9.5% -25.0%
600-699 lbs. N/A N/A -16.0% N/A -10.0% -16.7%
700-799 lbs. N/A N/A 10.7% N/A 5.9% 4.7%
800+ lbs. N/A N/A 57.9% N/A 6.5% 19.6%
TOTAL -3.7% 11.4% -1.7% -7.0% -18.2% -1.7%
[1] Individual weight categories include states that are N/A
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