US cattle on feed as of May 1 totaled 11.6 million head, up 2% from a year ago and slightly above market expectations, marking the first year-on-year increase in 18 months, according to the USDA.
April placements reached 1.70 million head, up 6% from a year earlier and well above analyst forecasts, suggesting stronger feedlot placements despite historically tight cattle supplies. Reuters had projected a 3.4% increase.
Meanwhile, April marketings totaled 1.64 million head, down 10% year-on-year, broadly in line with expectations. The combination of higher placements and slower marketings contributed to the increase in cattle on feed inventories.
The data comes as the US cattle herd remains at its smallest level in more than 70 years, with drought and herd liquidation continuing to constrain overall supply.
