OMAHA (DTN) -- Thursday's June 1 USDA Cattle on Feed report is once again one to watch, as the placement data could throw a wild card into the market.

It's widely believed placements will be lower in Thursday's report given that placements in April were exponentially higher than a year ago, the border to Mexico remains closed, and the domestic cow herd is at a historic lower. But, on the other hand, there are some who believe placements could actually be higher than a year ago, simply because of the drought much of the nation is plagued with and the effect that has had on producers.

The other, quieter, line item that needs to demand some of your attention is the total number of cattle on feed. I think it's imperative that producers understand how the feeding dynamics have changed over the past 10 years. COVID taught feedlot managers they can feed cattle to far greater weights than anyone believed before. Consequently, the slower turnover ratio in feedlots has gravely affected the on-feed total. It's gut-wrenching to recognize that, although the cow herd sits at a multidecade low, we have on-feed totals surpassing year-ago levels. Think about what's going to happen to fed cattle prices once we do start to see a build-back.

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USDA will release its June 1 Cattle on Feed report at 2 p.m. CDT on Thursday.

ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com

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