October 29, 2007

Cattle on feed in US down 4 percent

The number of cattle on feed in the US was lower than expected as at 1 October, but placements in September were higher, according to the United States Department of Agriculture (USDA) September cattle on feed report. The report is being viewed as slightly positive for near-term US fed cattle prices, but slightly negative for early-2008 prices.

The report shows that cattle and calves on feed were 11 million head on 1 October, 4 percent below the same period in 2006 but 5 percent above 2005. In contrast, placements into feedlots during September were nearly 2.5 million, 9 percent above 2006 and 3 percent above 2005. These placement figures exceeded analyst's expectations due, in part, to ongoing drought conditions and the consequent lack of available pasture feed.

Marketings of fed cattle during September totalled 1.7 million, 3 percent below 2006 and 6 percent below 2005 - the second lowest for September since the data series began in 1996.