USDA’s June Cattle on Feed report is being viewed as neutral to slightly supportive for the cattle market. Feedlot inventories totaled 11.7 million head on June 1, up two percent from a year ago and in line with trade expectations. The biggest surprise came in placements, which totaled 1.7 million head in May, down ten percent from a year earlier and below pre-report estimates. Marketings declined 12 percent from last year. Analysts said the smaller placement number reinforces expectations for tighter feeder cattle supplies moving forward.
