Shagam Breaks Down Recent Cattle Numbers

USDA Livestock analyst Shayle Shagam recently looked at last week's cattle inventory and feed report. What does he think?

"What we are looking at is definite signs that there's a liquidation."

Shagam said most numbers in the reports were lower year over year, but roughly 1% to 2%. June cattle placements were down 7% from last year's numbers. And of course 2020 was a unique year.

"[So] we are going to be having fewer cows which are going to be bred probably in the coming months. Fewer number of heifers which are going to be entering the cow herd. This report already indicated that we were down about a percent on our cattle inventory. If we worked through all of these numbers we're looking at about 1.6% fewer cattle outside feedlots which means again tighter supplies of cattle to be placed on feed in the coming months."

Which could result in higher prices. So Shagum says once again, the industry is on the downside of the cattle cycle.

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