Cattle Inventory:
Third year of slow contraction in breeding herd continues.
Lowest July 1 total cattle herd since USDA started the July survey in 1973.
Lowest annual calf crop since 1950. Lower calf crop numbers will continue for three years.
Cattle on Feed:
June Placements are expected to be 8.0% smaller than last year. Keep in mind that this drop versus June of 2008 placements is on top of last year's 8.4% decline from 2007 levels. In fact, this is the smallest June Total in 13 years. Sharp losses in previous months of cattle feeding have created an equity drain for this sector which is inhibiting new placements. Cattle placed in June will be marketed from October through February.
Allendale anticipates a Marketing total 0.8% smaller than June of 2008. This is the smallest Marketing total since USDA started the current data series in 1995/96. There was one more day to market in this year's June. Marketing will remain under last year's level through August.
Cattle on Feed total, at 5.0% under last year's July 1, is the smallest for that month in 10 years.
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