Cattle placements drop 8%
The USDA says producers placed fewer cattle into U.S. feedlots during July 2021 than in July 2020. That year ago placement total was largely due to producers holding back supplies earlier in the 2020 due to concerns about demand caused by COVID-19. Placements of 1.739 million head were 8% under last year and but slightly above the July 2019 total.
By weight, placements of cattle weighing less than 600 pounds were 375,000 head, 600 to 699 pound placements were 255,000 head, and placements of cattle weighing 700 to 799 pounds were 410,000 head, while 800 to 899 pound placements were 424,000 head, 900 to 999 pound placements were 205,000 head, and placements of cattle weighing 1,000 pounds and heavier were 70,000 head.
July marketings were 1.900 million head, 5% lower than a year ago and about 100,000 head less than two years ago.
The August 1st, 2021 cattle on feed total was 11.074 million head, 2% under August 1st, 2020 but unchanged from August 1st, 2019.
The numbers look supportive for cash and futures prices, but that will depend on how that year to year comparison for placements is interpreted.
Year to year comparisons for Brownfield states:
Iowa: On Feed: 600,000 head, down 3% from August 1st, 2020; Placements: 56,000 head, 11% lower than July 2020; Marketings: 53,000 head, 24% less than the year before
Kansas: On Feed: 2.41 million head, unchanged from August 1st, 2020; Placements: 440,000 head, 15% lower than July 2020; Marketings: 470,000 head, 4% less than the year before
Minnesota: On Feed: 95,000 head, down 21% from August 1st, 2020; Placements: 11,000 head, steady with July 2020; Marketings: 15,000 head, equaling the year before
Nebraska: On Feed: 2.2 million head, down 1% from August 1st, 2020; Placements: 440,000 head, 6% lower than July 2020; Marketings: 520,000 head, 4% more than the year before
South Dakota: On Feed: 195,000 head, up 8% from August 1st, 2020; Placements: 21,000 head, 5% higher than July 2020; Marketings: 25,000 head, 4% more than the year before