The USDA released its monthly Cattle on Feed report on June 23, indicating a 3% decrease from year-ago levels. On feedlots with more than 1,000 head of capacity, 11.6 million cattle are on feed for slaughter in the U.S. Feedlot placements for the month of May totaled 1.96 million head, up 5% from 2022, with net placements at 1.88 million head.
While the rise in placements was widely expected, such a sharp increase came as a surprise to many, with multiple pre-report estimates from analysts projecting a figure closer to 2%. USDA livestock analyst Shayle Shagam says the rise is likely due to continued dry weather in much of the country, particularly the southern Plains, where cow-calf producers may be selling off heifers they initially expected to retain as replacements. Shagam also points to increased demand for and price of beef, which he says is a strong indicator that feedlot operators are getting a strong return on investment from those purchased cattle.
The breakdown of cattle placed by weight class in May is as follows:
- 380,000 head under 600 pounds
- 295,000 head 600 to 699 pounds
- 480,000 head 700 to 799 pounds
- 505,000 head 800 to 899 pounds
- 215,000 head 900 to 999 pounds
- 80,000 head over 1,000 pounds
Fed cattle marketed in May totaled 1.95 million head, 2% below 2022 levels, and other disappearance sat at 74,000 head, down 3%.
The Cattle on Feed report can be accessed at the USDA Economics, Statistics and Market Information System (ESMIS) website.
