July 26

7/26 – In Friday’s Cattle on Feed report, the USDA said feedlot inventories (at 11.3M head on July 1st), were down 1.3% from a year ago and 2% below 2019 levels. New feedlot placements in June were down 7.1% from last year and 5% below June 2019. Beef demand was red hot in June. Cattle marketings were 2.7% above a year ago and 4% above 2019. The USDA also released its mid-year inventory report on Friday. Total cattle and calf numbers in the U.S. were down 1.3% from a year ago. Heifers for beef replacement were down 2.3%. Cattle numbers are declining, and this year’s drought is forcing early placements at lower weights. Both reports were a bit bullish for prices and confirmed expectations for tighter beef supplies in late 2021 and 2022. Cattle futures at $121.50/cwt (7/23) are well above a 5-year average of $108.49. Dec 2021 futures are $132.30; April 2022 are $139.40.