U.S. cattle on feed totaled 11.4 million head on July 1, up two percent from a year ago, according to USDA's latest Cattle on Feed report. Feedlots placed 1.4 million head during June, down three percent from last year, while marketings also fell by three percent to 1.66 million head, the lowest June total since records began in 1996. Despite the larger inventory, analysts say the report was less bearish than the headline suggests because cattle are remaining in feedyards longer rather than entering the system in greater numbers. One market analyst says, "The two percent rise in cattle on feed reflects cattle staying in feedyards longer, not more cattle entering the system." The report suggests feedlots have ample market-ready cattle in the short term, but supplies of replacement cattle continue to tighten.
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