August 24, 2023

Decline in placements of cattle into US feedlots in July 2023

Placements of cattle into US feedlots fell 8% from July 2022 to July 2023.

The United States Department of Agriculture said the monthly placements total was 1.618 million head, with that year-to-year decline tied to lower feed prices, better pasture conditions and generally tighter numbers after aggressive marketings earlier in this year. The decrease was despite heavy US feeder cattle imports from Mexico boosting supplies.

These cattle will mostly head to market in the first quarter of 2024.

Marketings in July were 5% below last year at 1.727 million head due to tighter ready numbers, while the total number of cattle on feed in the United States on August 1 was 2% lower at 11.03 million head.

The numbers could be supportive for cash, wholesale and futures prices, but that will also depend on beef demand.

- Brownfield Ag News