Drought Fuels 11-year High in U.S. June Feedlot Cattle Placements.
Good profits for feedlots in June allowed them to buy more calves for fattening for sale to packing plants, said analysts.
They said an increasing number of cattle in parts of the northern Plains were entering feedyards as drought grips the region.
USDA’s report showed June placements at 1.770 million head, up from 1.525 million a year earlier and above the average forecast of 1.618 million.
It was the most for the month since 1.95 million in 2006.
The government put the feedlot cattle supply as of July 1 at 10.821 million head, up 4.5 percent from 10.356 million a year ago.
USDA said the number of cattle sold to packers, or marketings, were up 4.0 percent in June from a year ago, to 1.989 million head.
Analysts had projected an increase of 4.7 percent from 1.912 million last year.
On Friday the government simultaneously issued the semi-annual cattle inventory report.
It showed the July 1 U.S. cattle herd at 102.6 million head, up from 98.2 million two years ago.