June 26

6/26 - In Friday’s monthly cattle report, the USDA said feedlot inventories totaled 11.55M head on June 1, down 2.9% from a year ago. New placements onto feedlots in May were 4.6% above a year ago, and May marketings (from feedlots) were up 1.7%. While U.S. herd liquidation has slowed, imports of feeder cattle from Mexico and Canada are up 31% from last year – and likely account for the increase in placements. In June’s WASDE, the USDA projected a 4.2% drop in beef output for 2023 and a huge 8.4% decline in 2024. Over the past 6 months, the USDA has raised its 2023 cattle price forecast from $135 to a record-high $171.70/cwt and projects 2024 even higher at $180.00. CME cattle futures set another record high at $179.82 in early June and closed at $177.50/cwt on Friday (6/23). Forward contracts are averaging $174.66/cwt for 2nd half 2023, and a record-high $182.73 for 1st half 2024.