An agricultural economist says the latest USDA Cattle on Feed report should lend support to the cattle market. The USDA Cattle on Feed report shows tighter near-term supply as marketings outpaced placements.
USDA Cattle on Feed report implications for cattle markets
Kenny Burdine of the University of Kentucky said the takeaway is straightforward. Placements came in below expectations, marketings were in line, and the industry marketed more cattle than it placed, which pulled cattle on feed counts down more than anticipated.
He described the report as broadly bullish.
According to Burdine, the report will also serve as a reference point as live cattle imports from Mexico resume today. He said the next Cattle on Feed update could capture about a week of those flows in the August placement figures if conditions do not change.
Burdine added there are still no clear indicators of herd expansion. He said recent packing plant closures and Friday’s announcement by President Trump allowing up to 300,000 metric tons of product for ground beef to enter the U.S. with no out-of-quota tariff for the next 90 days could add volatility.
If added supply trims beef prices, he said it would not be supportive for cattle prices and could further discourage expansion. Related coverage on the policy can be found in Trump to ease ground beef import quotas for 90 days.
The USDA reported all cattle on feed up 1.8 percent from a year ago, placements down 11 percent, and marketings down a little more than 7 percent year over year. More detailed data and tables are available from the U.S. Department of Agriculture.