The USDA Cattle on Feed Report showed placements for the month of May at 104.6% of last year versus an average trade expectation of 102.0% and a range of 100.1% to 103.7%. Marketings came in at 101.7% of last year versus 101.6% expected (range 101.1% to 102.0%). On feed supply as of June 1 came in at 97.1% of last year versus an average expectation of 96.7% (range of 96.4% to 96.9%).

The report was bearish, especially for the deferred contracts, as it showed placements well above the average expectation and even above the top end of the range. On feed was above average as well, which is bearish as well. We look for the market to open 1.00-2.00 lower on Monday.

This file contains the monthly total number of cattle and calves on feed, placements, marketings, and other disappearances; by class and feedlot capacity for selected states; number of feedlots and fed cattle marketings by size groups for selected states. Data is organized by state and by U.S.

This report offers a timely update on the current makeup of the beef cattle herd. It is probably the most-watched of the USDA reports for the cattle markets and can be a market-moving event if it contains a surprise. The marketings number provides an indicator of recent demand and has the ability to affect the price of nearby futures contracts. The placements number offers insight on the future supply of market ready cattle and has a tendency to affect the deferred contracts. Cattle are placed on feed for anywhere from 90 to 180 days, so a large placements number in June would project large market-ready supply in the fall. Both the placements and the marketings numbers inform the on feed number, which is a measure of current supply. The report offers state-by-state breakdowns as well by various weight groupings, providing an opportunity for further, in-depth analysis. Cattle on Feed reports are usually released on Friday afternoons after the cattle futures market closes, and the results will be reflected on the opening the following Monday morning.