US cattle placements fall to record August low

The number of cattle placed in US feedlots in August fell by around 9% year-on-year, marking the lowest level for the month since the data series began in 1996. Marketings of fed cattle also dropped to a record August low.

Overall cattle marketings declined by around 3% year-on-year and 6% from July. At the same time, total cattle on feed inventories remained about 1% above last year’s level.

The largest year-on-year declines in placements were recorded in Colorado, down 18%, Nebraska, down 14%, Kansas, down 7%, and Texas, down 6%. Oklahoma was the exception, with placements rising by 8%.

In the coming months, supplies could tighten further due to smaller calf crops and limited feeder cattle availability outside feedlots. Higher feed costs may also encourage shorter feeding periods and reduce slaughter weights.

If beef production declines, tighter supplies could support beef and cattle prices. However, increased cattle imports from Mexico and a faster slaughter pace could partly offset the supply shortage.

Tags: Beef cattle, cattle, USA