U.S. Cattle on Feed Update – May ’20
Executive Summary
U.S. cattle on feed figures provided by the USDA were recently updated with values spanning through the end of Apr ’20. Highlights from the updated report include:
Placements in feedlots declined on a YOY basis for the fourth consecutive month, finishing down 22.3% and reaching an eight year low seasonal level. The YOY decline in placements was largely consistent with average analyst expectations of a 22.6% decline.
YOY declines in placements were widespread across weight groups and led by those weighing 700-799 pound (-29.5%), followed by placements weighing 600-699 pounds (-28.0%), placements weighing 800 pounds or more (-18.7%) and placements weighing 600 pounds or less (-16.9%).
Total placements in feedlots declined 1.6% on a YOY basis throughout the ’18-’19 production season, however annual placement rates remained 2.8% above three year average figures. ’19-’20 YTD marketings have declined by an additional 5.2% on a YOY basis throughout the first seven months of the production season.
Cattle placements weighing under 700 pounds declined 21.5% on a YOY basis during Apr ’20, finishing lower for the third consecutive month. The YOY decline in cattle placements weighing under 700 pounds was the largest experienced throughout the past six and a half years on a percentage basis. Cattle placements weighing under 700 pounds finished 3.9% lower on a YOY basis throughout the ’18-’19 production season while ’19-’20 YTD placements have declined by an additional 3.3% on a YOY basis throughout the first seven months of the production season.
Cattle placements weighing 700 pounds or more declined 22.6% on a YOY basis during Apr ’20, finishing lower for the fourth consecutive month. The YOY decline in cattle placements weighing 700 pounds or more was the second largest experienced throughout the past 19 years, trailing only the previous month’s decline. Cattle placements weighing 700 pounds or more increased 0.1% on a YOY basis throughout the ’18-’19 production season however ’19-’20 YTD placements have declined by 6.6% on a YOY basis throughout the first seven months of the production season.
Marketings of fed cattle declined 24.3% on a YOY basis during Apr ’20, finishing lower on a YOY basis for the first time in the past five months and reaching a record low level. Monthly marketing figures have been compiled since 1996. The YOY decline in marketings was largely consistent with average analyst expectations of a 24.9% decline. ’18-’19 annual marketings of fed cattle increased 1.3% YOY, reaching an 11 year high, however ’19-’20 YTD marketings have declined by 1.3% on a YOY basis throughout the first seven months of the production season.
- U.S. cattle and calves on feed for the slaughter market declined on a YOY basis for the second consecutive month as of May 1st, finishing down 5.1% and reaching a three year low seasonal level.
- Placements in feedlots declined 22.3% YOY during Apr ’20, finishing lower on a YOY basis for the fourth consecutive month and reaching an eight year low seasonal level.
- Marketings of fed cattle declined 24.3% on a YOY basis during Apr ’20, finishing lower on a YOY basis for the first time in the past five months and reaching a record low level.
Placements in feedlots declined on a YOY basis for the fourth consecutive month, finishing down 22.3% and reaching an eight year low seasonal level. The YOY decline in placements was largely consistent with average analyst expectations of a 22.6% decline.
YOY declines in placements were widespread across weight groups and led by those weighing 700-799 pound (-29.5%), followed by placements weighing 600-699 pounds (-28.0%), placements weighing 800 pounds or more (-18.7%) and placements weighing 600 pounds or less (-16.9%).
Total placements in feedlots declined 1.6% on a YOY basis throughout the ’18-’19 production season, however annual placement rates remained 2.8% above three year average figures. ’19-’20 YTD marketings have declined by an additional 5.2% on a YOY basis throughout the first seven months of the production season.
Cattle placements weighing under 700 pounds declined 21.5% on a YOY basis during Apr ’20, finishing lower for the third consecutive month. The YOY decline in cattle placements weighing under 700 pounds was the largest experienced throughout the past six and a half years on a percentage basis. Cattle placements weighing under 700 pounds finished 3.9% lower on a YOY basis throughout the ’18-’19 production season while ’19-’20 YTD placements have declined by an additional 3.3% on a YOY basis throughout the first seven months of the production season.
Cattle placements weighing 700 pounds or more declined 22.6% on a YOY basis during Apr ’20, finishing lower for the fourth consecutive month. The YOY decline in cattle placements weighing 700 pounds or more was the second largest experienced throughout the past 19 years, trailing only the previous month’s decline. Cattle placements weighing 700 pounds or more increased 0.1% on a YOY basis throughout the ’18-’19 production season however ’19-’20 YTD placements have declined by 6.6% on a YOY basis throughout the first seven months of the production season.
Marketings of fed cattle declined 24.3% on a YOY basis during Apr ’20, finishing lower on a YOY basis for the first time in the past five months and reaching a record low level. Monthly marketing figures have been compiled since 1996. The YOY decline in marketings was largely consistent with average analyst expectations of a 24.9% decline. ’18-’19 annual marketings of fed cattle increased 1.3% YOY, reaching an 11 year high, however ’19-’20 YTD marketings have declined by 1.3% on a YOY basis throughout the first seven months of the production season.