The USDA Cattle on Feed Report showed placements for the month of June at 102.7% of last year versus trade expectations of 98.4% and a range of expectations from 96.0% to 102.7%. June marketings came in at 95.0% of last year versus 95.1% expected (range 94%-96%). June 1 on feed supply came in at 98.2% versus 97.7% expected (range 97% to 98.9%). The Cattle inventory report showed all cattle and calves on July 1 totaled 95.9 million head versus an average trade expectation of 96.36 million. This was down from 98.6 million a year ago.

The Cattle on Feed report was bearish, particularly for the deferred contracts because June placements came at the top of the range of expectations. They also came in above a year ago, whereas analysts polled were expecting a decline. The on-feed number was bearish as well, as it was above the average expectation. The marketings number was very close to the average and could be defined as"neutral." The inventory number was also bearish, as it came in higher than the average expectation.

We look for a lower opening on Monday because the numbers came in at the bearish end of expectations, but we expect the market to quickly move past this event and resume its uptrend, as the reports still confirmed that the US cattle inventory is the lowest for July 1 on record, going back to at least 1973.

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.