Cattle on Feed supply as of August 1st came in right on the estimates at 100.3% of last year versus the average trade estimate of 100.1% with a range of 99.8% to 100.5%. July placements came in at 105.8% versus trade expectations of 104.1% and a range of 101.9% to 105.9%. This report for July has two extra weekdays, and placements are higher than expected. Marketings for July came in at 107.7% of last year versus the average estimate of 108.3% and a range of 107.8% to 109.0%.

Similar to last month, on feed numbers came in right on the pre-report estimates, as did the marketing number. Last month, placements were 3% lower than the pre-report guesses, while this month, they are nearly 2% higher than estimates. Cash cattle trade this week was weaker, and feeder cattle futures prices plummeted to new contract lows in the 1st half of the week. The sharp drop likely already priced in the higher placement numbers. Deteriorating pasture conditions in the southern Plains due to dryness may result in more cows moving to the sale barns, which could pressure the weak technical outlook for feeders and live cattle. Look for December live cattle to possibly test the contract lows at 172.25 next week.

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.