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U.S. Cattle on Feed Update – Aug ’20

  • August 21, 2020
  • by Belinda Przybylski
Executive Summary U.S. cattle on feed figures provided by the USDA were recently updated with values spanning through the end of Jul ’20. Highlights from the updated report include:
  • U.S. cattle and calves on feed for the slaughter market as of Aug 1st finished 1.5% higher on a YOY basis, reaching a record high seasonal level.
  • Placements in feedlots increased 11.0% on a YOY basis throughout Jul ’20, reaching a nine year high seasonal level.
  • Marketings of fed cattle declined 0.6% on a YOY basis throughout Jul ’20, finishing lower for the third time in the past four months.
Additional Report Details According to the USDA, Aug 1st cattle and calves on feed for the slaughter market in the U.S. for feedlots with capacity of a thousand head or more declined seasonally from the previous month but finished 1.5% higher on a YOY basis, reaching a record high seasonal level. The Aug 1st YOY increase in the cattle on feed supply was greater than analyst expectations of 0.7% increase. The cattle on feed supply had finished lower on a YOY basis over four consecutive months prior to the most recent increase. The month-over-month decline in the cattle on feed supply of 1.3% was slightly smaller than the ten year average July – August decline of 1.8%. Placements in feedlots finished higher on a YOY basis for the second consecutive month during Jul ‘20, increasing by 11.0% and reaching a nine year high seasonal level. The YOY increase in placements was the largest experienced throughout the past 32 months, finishing significantly above average analyst expectations of a 5.9% increase. YOY increases in placements were led by those weighing 600-699 pounds (+21.2%), followed by placements weighing 600 pounds or less (+16.7%), 800 pounds or more (+7.1%) and 700-799 pounds (+6.1%). Total placements in feedlots declined 1.6% on a YOY basis throughout the ’18-’19 production season, however annual placement rates remained 2.8% above three year average figures. ’19-’20 YTD marketings have declined by an additional 2.6% on a YOY basis throughout the first ten months of the production season, despite the most recent increase. Cattle placements weighing under 700 pounds increased 18.5% on a YOY basis during Jul ’20, finishing higher for the third consecutive month and reaching an eight year high seasonal level. The YOY increase in cattle placements weighing under 700 pounds was the largest experienced throughout the past 23 months on a percentage basis. Cattle placements weighing under 700 pounds finished 3.9% lower on a YOY basis throughout the ’18-’19 production season while ’19-’20 YTD placements have declined by an additional 0.7% on a YOY basis throughout the first ten months of the production season, despite the most recent increase. Cattle placements weighing 700 pounds or more increased 6.7% on a YOY basis during Jul ’20, finishing higher for the first time in the past seven months. Cattle placements weighing 700 pounds or more declined 0.3% on a YOY basis throughout the ’18-’19 production season while ’19-’20 YTD placements have declined by an additional 4.0% throughout the first ten months of the production season, despite the most recent increase. Marketings of fed cattle declined 0.6% on a YOY basis throughout Jul ’20, finishing lower for the third time in the past four months. The YOY decline in marketings was largely consistent with average analyst expectations of a 0.4% decline. Marketings of fed cattle had reached record low levels over recent months as slaughterhouses slowed or closed operations due to outbreaks of COVID-19, prior to rebounding throughout the months of June and July. ’18-’19 annual marketings of fed cattle increased 1.3% YOY, reaching an 11 year high, however ’19-’20 YTD marketings have declined by 3.7% on a YOY basis throughout the first ten months of the production season.  
U.S. Cattle & Hogs Production Update – Aug ’20
U.S. Livestock Cold Storage Update – Aug ’20
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