The latest Cattle on Feed Report was released on Friday July 21, by the U.S. Department of Agriculture for the July 1 inventory numbers. It indicated that the number of cattle placed on feed in June 2017 was 1.770 million head, up over 16 per cent from 1.525 million head in June 2016. This number is down 16.5 per cent from 2.119 million head placed in May 2017. The number of fed cattle marketed in June 2017 was 1.989 million head, up four per cent from 1.912 million head in June 2016, and up almost two per cent from 1.951 million head marketed in May 2017.
The June 2017 cattle placements of 116.1 per cent compared to June 2016 were well above the average trade estimates (105.9 per cent). The cattle marketed in June of 104.0 per cent were slightly below the average trade estimates (104.6 per cent). The USDA cattle on feed numbers for July 1, 2017 were 10.821 million head, 4.5 per cent above the July 2016 inventory numbers of 10.356 million head, but 2.5 per cent below the June 2017 numbers. The USDA numbers from July 2016 to July 2017 were 104.5 per cent, almost two per cent higher than the average trade estimates (102.8 per cent). Both the higher June cattle placements and higher cattle on feed numbers for July 1 were above the average trade estimates and have helped push futures markets lower over the last week.
Beef production for the week ending July 29 was estimated at 505.0 million lbs., up 0.9 per cent from 500.3 million lbs. the previous week, and up 5.7 per cent from 477.8 million lbs. the same week a year ago. Cattle slaughtered over the week were estimated at 627,000 head, up 0.8 per cent from 622,000 head the previous week, and up 8.0 per cent from 581,000 head the same week a year ago.
U.S. choice beef cutout prices (600-900 lbs.) averaged US$206.96 per cwt over the week, down US$0.92 per cwt, or 0.4 per cent from US$207.88 per cwt the previous week, but up 4.1 per cent from US$198.79 per cwt the same week a year ago. U.S. weekly average choice beef cutout prices have declined by US$43.90 per cwt or 17.5 per cent, since the weekly average peaked at US$250.86 per cwt the week of June 17, 2017. U.S. beef exports for May 2017 were stronger than April and seasonally higher than May 2016 and May 2015, both in volume and dollar sales. The U.S. exported 75,148 t of beef in May 2017, up 3.9 per cent from 72,359 t in April 2017, and up 3.8 per cent from 72,404 t in May 2016. U.S. beef exports by volume for May 2017 versus 2016 were higher to Japan and Hong Kong, but lower to South Korea and Canada. Year-to-date,
Live daily cattle futures prices were also mixed for the reporting week with losses from the Monday to push prices lower, week-over-week. The nearby August contract was down US$3.525 per cwt to settle last Friday at US$112.900 per cwt. The October contract declined US$4.975 per cwt last week to settle Friday at US$112.425 per cwt. Prices in July moved higher until mid-July before trending lower after the USDA Cattle on Feed Report released July 21.
