The federally inspected slaughter for June was strong, exceeding the three previous years. More heifers and cows were in the slaughter mix in June, causing the average carcass weight to drop below the previous month’s expectations.

As reported by the U.S. Drought Monitor on May 4, 2021, 66% of the country was experiencing some level of drought, compared to just 31% the same week last year (see Figure 1).

Preliminary March 2021 federally inspected slaughter volume was up by 75,000 head from a year ago, totaling 2.95 million head, due to one extra slaughter day relative to March 2020.

The severe winter event in mid-February that dipped as far south as Texas disrupted packing plant operations, further-processing facilities and delivery of cattle to plants.

After languishing for weeks at about $114 per hundredweight (cwt), the fed cattle market has sprung to life. Fed cattle prices hit $123-$124 in more Northern regions and closed the week at $121 in the Southern Plains.

The USDA reported Sept. 1 feedlot inventories at 10.98 million head, down 1.3% from one year ago. This is the first year-over-year decrease in monthly cattle on feed totals in 33 months, since December 2016.

Spring sprung early this year as fed cattle prices have dropped sharply from their highs in early spring.