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Cattle on Feed Report Preview 06/18 12:45
Placement Data Is Possible Wild Card in June 1 Cattle on Feed
Report
By ShayLe Stewart
DTN Livestock Analyst
USDA Actual Average Estimate* Range
On Feed June 1 102.3% 101.7-103.8%
Placed in May 92.8% 89.0-104.0%
Marketed in May 89.0% 88.2-91.5%
* Estimates compiled by Dow Jones.
OMAHA (DTN) -- Thursday's June 1 USDA Cattle on Feed report is
once again one to watch, as the placement data could throw a
wild card into the market.
It's widely believed placements will be lower in Thursday's
report given that placements in April were exponentially higher
than a year ago, the border to Mexico remains closed, and the
domestic cow herd is at a historic lower. But, on the other
hand, there are some who believe placements could actually be
higher than a year ago, simply because of the drought much of
the nation is plagued with and the effect that has had on
producers.
The other, quieter, line item that needs to demand some of your
attention is the total number of cattle on feed. I think it's
imperative that producers understand how the feeding dynamics
have changed over the past 10 years. COVID taught feedlot
managers they can feed cattle to far greater weights than anyone
believed before. Consequently, the slower turnover ratio in
feedlots has gravely affected the on-feed total. It's gut-
wrenching to recognize that, although the cow herd sits at a
multidecade low, we have on-feed totals surpassing year-ago
levels. Think about what's going to happen to fed cattle prices
once we do start to see a build-back.
**
USDA will release its June 1 Cattle on Feed report at 2 p.m. CDT
on Thursday.
ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com
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