USDA report light cattle on feed
27 May 2009USDA's monthly Cattle on Feed report showed fewer cattle on feed on May 1 than a year ago, and those placed on feed were lighter, which could mean fewer cattle ready for market by August. USDA reported 10.8 million cattle on feed on May 1 in feedlots with capacity of 1,000 or more head. That was 2.8% fewer cattle on feed than a year ago and marked the 13th consecutive month in which feedlot inventories were lower than a year ago.
Cattle placed on feed rose 4.2% from a year ago. Analysts noted, however, that 22.2% of those weighed 600 lb or less, versus a 10-year April average of 19.5%. There were also more cattle placed at 600-699 lb (the second lightest category) than a year ago. 'This suggests that many of the cattle placed on feed will not come to market until approximately September or October, and that August may have fewer cattle marketings than previously anticipated', J P Morgan analyst Ken Goldman wrote in a note to investors. Marketings of fed cattle during April totalled 1.87 million, down 7% from a year ago. Source: Meatingplace.com
