June Placements Near Record

USDA’s July cattle on feed report  showed larger than anticipated placements of cattle into feedlots during June.  However, in May the USDA reported much smaller than anticipated placements.  So, over the last two months the situation seems to have evened out.  Clearly, in recent months drought has bolstered feedlot placements.

As of July 1, USDA reported the monthly number of cattle on-feed (1,000 head plus capacity feedlots) at 10.9 million head, 4.6 percent above a year ago and the 2000-2004 average.  As of July 1, USDA reported quarterly data on the types of cattle on-feed – steers on-feed were 4.3 percent above a year ago and heifers and cows/bulls were up 5.2 and 7.7 percent, respectively.

The above year ago on-feed numbers were in large part due to a surprisingly large placement number for June, as drought conditions in recent months have been severe.  USDA reported feedlot placements at 1.95 million head, 10 percent higher than 2005 and the second highest number for June since the series began.

Placements in the lightweight categories accounted for the yearly increase as placements in the middle (700-799 pounds) and heavyweights (800 pounds and heavier) were below 2005’s.  Placements were above last year in most states except Texas, Idaho and Washington.  Double-digit year-to-year increases occurred in many states as drought conditions spread.