By DTN Staff

This article was originally published at 2:03 p.m. CDT on Thursday, June 18. It was last updated with additional information at 2:32 p.m. CDT on Thursday, June 18.

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OMAHA (DTN) -- Cattle and calves on feed for the slaughter market in the United States for feedlots with a capacity of 1,000 or more head totaled 11.7 million head on June 1, 2026. The inventory was 2% above June 1, 2025, USDA NASS reported on Thursday.

Placements in feedlots during May totaled 1.70 million head, 10% below 2025. Net placements were 1.65 million head. During May, placements of cattle and calves weighing less than 600 pounds were 320,000 head, 600-699 pounds were 240,000 head, 700-799 pounds were 400,000 head, 800-899 pounds were 444,000 head, 900-999 pounds were 225,000 head, and 1,000 pounds and greater were 75,000 head.

Marketings of fed cattle during May totaled 1.55 million head, 12% below 2025. Marketings were the second lowest for May since the series began in 1996.

Other disappearance totaled 55,000 head during May, 11% below 2025.

DTN ANALYSIS

Thursday's June 1 USDA Cattle on Feed report was truly a mixed bag to sort through, DTN Livestock Analyst ShayLe Stewart said following the report's release.

"If you simply looked at the placement data, you may be quick to call the report bullish -- but the long-term ramifications of the higher number of cattle on feed, mixed with lower marketings, takes the report from being bullish to neutral at best," Stewart said.

"What's concerning about the increase in the total number of cattle on feed is that, as an industry, we sit a point in time when the U.S. beef cow herd is at a multidecade low, yet we are slowly stacking up supplies of fat cattle in feedlots across the country. Thankfully, feedlot managers are current right now and can enjoy the high prices the cash market is achieving. But the problem lies in what's going to happen when the pendulum swings and the U.S. cow herd begins to be rebuilt. At that point, there will be even more cattle to put into feedyards, and what do you think that's going to do to the cash market? An overabundance of supply is going to gravely affect the price of fed cattle. And let's not forget that at some point in the future, the U.S. border will reopen to Mexican feeder cattle, and that will also generate more supply to the marketplace and negatively affect not only the spot price of feeder cattle, but eventually the price of fed cattle as well.

"The placement data came in lower, as most anticipated, as last month's Cattle on Feed report showed a sizeable increase from a year ago. Drought conditions have pressured a large portion of the cow-calf sector to market their calves early, and they were consequently placed in feedlots in April. Fast forward to the placements in May, and there weren't as many calves/feeders that needed to be placed, as the vast majority of the drought placing had already occurred.

"Thursday's Cattle on Feed report will likely be absorbed as a neutral report at best by the market on Monday."

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DTN subscribers can view the full Cattle on Feed reports in the Livestock Archives folder under the Markets menu. The report is also available at https://www.nass.usda.gov/….

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