Cattle on Feed Reports Tighter Supplies

The nation's cattle feedlots are reporting tighter supplies again per the latest USDA Cattle on Feed report. USDA livestock analyst Mike Jewison says
Jewison: “The number of cattle and calves on feed in feedlots with capacity of 1,000 or more head was 9.8 million head, which was 2 percent below a year ago.”
More notable was lower placement and marketing numbers.
Jewison: “Placements during the month of July were 7 percent below a year ago while marketings were 9 percent below a year ago. I should note that both the marketing and placements number were the lowest for the month of July since the series began in 1996.”
That means tighter supplies of cattle outside of feedlots right now. Jewison shares additional insight into the lower weight cattle being placed in feedlots in the month of July.
Jewison: “If you look at the weight category and the placements-by-weight category they were down from a year ago for all of the weight categories but the less than 600 pounders. Well what does that mean? It means that it is probably a function of the cheaper corn and the feedlots going after the lighter animals given the cheaper corn. They can put the weight on at a lower cost than probably some of the cattle backgrounders can. The cheaper corn will definitely impact in terms of having a positive impact — seeing heavier weights of cattle. However, there is just the constraint that the number of cattle available for placement outside feedlots is very limited at this time. We should see year-over-year declines in the number of cattle placed.”