USDA’s latest cattle on feed report released Friday showed placements in feedlots during June declined 7% from a year ago to 1.67 million head.

“This was under trade expectations and this further tightens the supply expected to be offered in the December through March time frame,” said Rich Nelson, director of research at Allendale Inc. “We would consider this a positive for prices.”

Cattle and calves on feed for the slaughter market totaled 11.30 million head as of July 1, down 1% from the previous year.

Marketings of fed cattle increased 3% to 2.02 million head last month.