USDA has released the July cattle on feed report:
10.070 million head of cattle are on feed -- up 3% from a year ago
1.628 million head of cattle placed on feed -- up 17% from a year ago
1.997 million head of cattle marketed -- even with a year ago

Cattle weights were considerably lower than a year ago. Placements of cattle weighing below 600 pounds were up 40% from last June and 6.7% below the five-year average for the month of June. This has been seen as in indication that cattle supplies will apparently not rebound quite as much from a year ago as originally thought. Supplies appear to be a known commodity at this point. It is demand that will have to improve in order to increase cattle prices.

Marketings were approximately even with June of a year ago, and the highest for the month of June since 2007. The figure was slightly below pre-report expectations, and can likely be viewed as the only bearish figure on this report. Many indicators show that cattle supplies are current which leads analysts to expect a more bullish figure for the month of July.

The total number of cattle on feed increased by 3% from last year, which was approximately even with pre-report expectations. Worries regarding soft wholesale beef markets at the end of last week, as well a general down day in other commodity markets helped to push live cattle futures lower. Foreign demand has continued at an elevated rate, boosted by the sliding value of the U.S. dollar (down 7.5% over the past 8 weeks). Additionally, steer & heifer slaughter is expected to move lower in the coming weeks, as increased cash cattle prices have pushed packer margins back into the red.

Demand for both veal and lamb is seasonally low at this time of year. Although veal calf prices and supply are less than what packers want, they figure this is about the best they can hope for right now. When fall rolls around and demand for these items picks up, it seems almost a sure bet that we will see at least some upward movement in pricing.

Pork loins are up a few cents this week. Butts and hams are also showing slight increases. Bacon has advanced again. We have seen increases in bacon prices several times in the past couple of months.

Chicken prices did a little sidestep this week. Cutlets remain as is. Whole and cut birds are off a couple of cents.