US cattle futures rise after USDA reports higher-than‑expected feedlot placements

The U.S. Department of Agriculture said cattle placed in feedlots in April rose 5.5% year‑on‑year, surpassing analysts' 3.4% estimate. The increase, driven by drought‑related grass shortages on the Plains, signaled more beef supply in three to eight months and helped ease earlier price drops in live and feeder cattle futures on the Chicago Mercantile Exchange.

Live cattle futures closed at 239.15 cents per pound after the report, while feeder cattle settled at 349.45 cents. A day later, futures rebounded, with August live cattle at 242.50 cents and feeder cattle at 354.63 cents per pound, as concerns eased that high beef and fuel prices would curb consumer demand. The USDA also noted a modest rise in the pork cutout, supporting lean‑hog prices.

Traders noted that lower oil prices and a potential U.S.–Iran agreement could further reduce energy costs, lessening pressure on beef demand. Packers continued to lose money per head of cattle, while hog processors earned a small profit per animal.