US cattle feedlots see slight increase

Jul 25, 2024

USDA reports inventory rise, market adjustments

By Farms.com

The United States Department of Agriculture's (USDA) National Agricultural Statistics Service (NASS) released its latest cattle on feed report, indicating a modest increase in the cattle industry.

As of July 1, 2024, feedlots with a capacity of 1,000 or more head housed 11.3 million cattle and calves on feed for slaughter, reflecting a 1% rise from the previous year.

This increase is divided between steers and heifers. Steers and steer calves saw a 1% rise, reaching 6.82 million head and making up 60% of the total inventory. Heifers and heifer calves also experienced a slight increase, totaling 4.48 million head.

The report also highlights adjustments within the cattle industry. Placements in feedlots during June 2024 were 7% lower than June 2023, totaling 1.56 million head.

The marketing of fed cattle during June followed a similar trend, decreasing by 9% compared to the previous year and marking the second-lowest June marketing figure since record-keeping began.

These trends suggest ongoing adjustments within the cattle industry. While the overall inventory shows a small increase, placements and marketings indicate a cautious approach from producers.

The USDA data provides valuable insights for stakeholders in the cattle market, allowing them to make informed decisions.

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!