On Feed Comments:
The July 1 Cattle on Feed report looks bearish with June placements turning out to be considerably larger than the trade was anticipating. It would appear that dry pasture conditions forced stockers off grass earlier than expected. Specifically Texas placement in June totaled 6{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} above a year ago. Positively, the marketing total was also larger than expected, working to keep the lid on the total on feed population. Nevertheless, traders will focus on the bearish placement number. Look for October and December live cattle futures to open .50 to $1 lower when trade resumes on Monday.
Cattle Inventory Comments:
The mid-year herd inventory report turned out to be close to expectations with herd liquidation continuing. Specifically, the July 1 total population of 100 million head represents the smallest head count since July 1 of 1973.
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