US cattle feedlot placements drop 8% YOY in May

US cattle put in feedlots in May totaled 1.886 million head, down 7.8% from 2.046 million head in May 2024, the USDA said in its Cattle on Feed report released late June 23.

According to S&P Global Energy data, placements during May were at the bottom of the 2020-2024 average and below those of 2024 and 2023.

"Placement levels came in a touch softer than SPGCI expectations for May as they were shown down nearly 8% compared to last year at just 1.89 million head," said Caleb Hurst, beef market analyst for S&P Global Energy. "The lowest May placement number since 2016."

"The majority of the pullback can be attributed to the US-Mexico border closure, which occurred on May 11 due to New World Screwworm," Caleb added.

The number of US cattle on feed totaled 11.442 million head on June 1, down 1.2% from 11.583 million head on June 1, 2024, although up 0.6% from the 11.376 million head on the previous month, the USDA said in its Cattle on Feed report.

According to S&P Global Energy data, the inventory numbers were the lowest for any June since 2017.

"S&P Global Energy still anticipates cattle on feed numbers to dwindle in the back half of 2025 with placement levels expected to lag behind year ago levels especially with any prolonged border closure," Caleb Hurst, beef market analyst added. "Smaller projected harvest rates may help aid in maintaining cattle on feed numbers, slightly, but marketings are still expected to outpace placement levels moving forward through the remainder of the year."

Prices

The trim and grind domestic markets have been supported by the summer demand in full swing and a slow pace of cattle slaughter, sources said. Which is supporting prices for lean beef trimming imports.

Platts, part of S&P Global Energy, assessed the price of 90CL beef CIF US at $6,636/mt, or $3.01/lb, for 30-60 day shipment period June 23, up $88/mt, or 1.3%, week on week; $176/mt, or 2.7%, from May 1 and during 2025.

According to the USDA, placements are steers and heifers put into a feedlot, fed a ration to produce a carcass that will grade select or better, and are intended for the slaughter market.

Cattle on feed are steers and heifers being fed a ration of grain, mostly corn, silage, hay and/or a protein supplement such as dried distillers grains with solubles or soybean-meal, ahead of slaughter. It excludes cattle held back for later sale to feedlots, and only feedlots with a capacity of 1,000 animals or more are considered.

The cattle on feed and placements data are indicators of the US supply of beef and US demand for corn, soybean meal and DDGS.