July 26, 2006

More US cattle on feed as drought continues

The number of cattle on-feed in the US jumped 5 percent in June as drought conditions forced farmers to sell off their cattle at an earlier age and lower weight, according to an industry source.

While processors would be paying lower prices, producers are making losses by sending young cattle to feed earlier. The sale of young cattle to feedlots increased 10 percent in June, against expectations of a 2.5 percent decline.

A lack of grazing land has forced farmers to sell off cattle at a younger age.

The early sale of young cattle may lead to a slowing of the expansion of the national herd as it means fewer breeding cattle in the herd.