Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.3 million head on Aug. 1, 2020. The inventory was 2 percent above Aug. 1, 2019. This is the highest Aug. 1 inventory since the series began in 1996, USDA reported.
Placements in feedlots during July totaled 1.89 million head, 11 percent above 2019. Net placements were 1.84 million head. During July, placements of cattle and calves weighing less than 600 pounds were 420,000 head; 600-699 pounds were 315,000 head; 700-799 pounds were 435,000 head; 800-899 pounds were 458,000 head; 900-999 pounds were 195,000 head; and 1,000 pounds and greater were 70,000 head.
Marketings of fed cattle during July totaled 1.99 million head, 1 percent below 2019.
Other disappearance totaled 57,000 head during July, 20 percent below 2019.
DTN analysis
“August’s USDA Cattle on Feed report wasn’t supposed to unveil anything too noteworthy other than a potentially stronger placement figure,” said DTN Livestock Analyst ShayLe Stewart. “With fewer feeders marketed this spring amid COVID-19’s chaos, producers were leery of the market and weren’t interested in selling their feeders while there was so much hysteria and uncertainty in the marketplace. But low and behold, Friday’s report didn’t yield a placement figure that was anticipated, but rather an 11 percent increase with 1.89 million head placed.
“As the spring’s late feeder cattle specialty sales started to grow in demand and interest, producers began to market their calves/feeders, and with corn prices at manageable levels, feedlots were dialed in, ready to put good loads of cattle together. As spring turned into summer, the markets only grew with support and interest, which ultimately has led to a larger feeder cattle placement.
“The market’s recent placement jolt isn’t alarming, as we understood fewer cattle were marketed this spring. And, with August’s on-feed figure only 1.2 percent greater than a year ago, these numbers indicate that the market is reaching a more current position in the fat cattle arena.
“Friday’s report comes as a vivid reminder that, when the typical cattle marketing schedule gets thrown from its usual stance, at some point or another the cattle have to appear. August’s Cattle on Feed starkly shared that reality as feeders that would have usually been placed earlier are now working their way into the system.” — DTN
