Executive Summary

U.S. cattle on feed figures provided by USDA were recently updated with values spanning through the end of May ’18. Highlights from the updated report include:

• U.S. cattle and calves on feed for the slaughter market as of Jun 1^st finished higher on a YOY basis for the 18^th consecutive month, finishing up 4.1% to a new record seasonal high for the month of June.
• May ’18 placements in feedlots increased on a YOY basis for the first time in the past three months, finishing up 0.2% to an 11 year seasonal high for the month of May.
• Marketings of fed cattle increased on a YOY basis for the 20^th time in the past 22 months during May ’18, finishing up 5.4% to a ten year seasonal high for the month of May.

Additional Report Details

According to USDA, cattle and calves on feed for the slaughter market in the U.S. for feedlots with capacity of 1,000 or more head totaled 11.55 million head on Jun 1^st, finishing higher on a YOY basis for the 18^th consecutive month. The Jun ’18 U.S. cattle on feed supply was up 457,000 head, or 4.1%, from Jun 1^st of last year, finishing at a new record seasonal high for the month of June.

Placements in feedlots during May ’18 totaled 2.12 million head, up 5,000 head, or 0.2%, from May of last year. The YOY increase in placements was the first experienced throughout the past three months. Overall, placements finished at an 11 year seasonal high for the month of May. Placements for those weighing 600 pounds or less increased the most on a YOY basis throughout May ’18, finishing down 11.3%, followed by placements weighing 600-699 pounds, which increased 7.9%. Placements weighing 700-799 pounds declined 9.3% YOY while placements weighing 800 pounds or more declined 1.8%. Total placements in feedlots increased 8.8% YOY throughout the ’16-’17 production season, finishing at a six year high, and are up an additional 2.4% throughout the first two thirds of the ’17-’18 production season.

May ’18 cattle placements under 700 pounds increased 70,000 head, or 9.8%, on a YOY basis, finishing at a six year seasonal high for the month of May. The YOY increase in cattle placements under 700 pounds was the first experienced throughout the past three months. Cattle placements under 700 pounds increased 10.2% throughout the ’16-’17 production season and are up an additional 5.0% throughout the first two thirds of the ’17-’18 production season.

May ’18 cattle placements 700 pounds or heavier declined by 65,000 head, or 4.6%, on a YOY basis but remained at the third highest seasonal figure experienced throughout the past ten years for the month of May. Cattle placements over 700 pounds have declined on a YOY basis over three consecutive months through May ’18. Cattle placements 700 pounds or heavier increased 7.9% YOY throughout the ’16-’17 production season, finishing at a record annual high, and remain up an additional 0.5% throughout the first two thirds of the ’17-’18 production season, despite the recently experienced declines.

Marketings of fed cattle during May ’18 totaled 2.06 million head, up 105,000 head, or 5.4%, from May of last year. The YOY increase in marketings of fed cattle was the 20^th experienced throughout the past 22 months. Overall, marketings of fed cattle reached a ten year seasonal high for the month of May. Marketings of fed cattle increased 6.8% throughout the ’16-’17 production season, finishing at a six year high, and are up an additional 2.8% throughout the first two thirds of the ’17-’18 production season. Other disappearance totaled 73,000 head during May ’18, up 3,000 head, or 4.3%, from the previous year.