Market News & Headlines >> May Feedlot Placements Seen Up Strongly

Friday’s monthly Cattle-on-Feed report from USDA is expected to show the U.S. feedlot inventory grew for a third straight month in May as large feedlot placements outweighed continued strong feedlot marketings. 

Trade estimates of the June 1 U.S. feedlot inventory average 102.4% of a year earlier in a range from 101.7%-103.6%, according to a Reuters survey of 10 analysts. At the average of trade estimates, the June 1 feedlot inventory would total 11.060 million head, which would be the largest for the date in five years and the largest for any month since February 2013.

Pre-report estimates of May feedlot placements average 110.4% of a year earlier in a range from 106.5%-114.0%. At the average of trade estimates, May placements would total 2.085 million head, which would be the largest for the month in 10 years. 

Trade expectations for May feedlot marketings average 108.5% of a year earlier in a range from 103.4%-111.0%. May marketings at the average of trade expectations would total 1.946 million head, which would be the largest for May (and for any single month) in four years.