July 26, 2011

 

US cattle enters lots earlier

 

 

The presence of an extreme drought caused cattle to be pushed into lots earlier than usual; reflecting a 4.1% increase in cattle placed on feed in June in contrast to last year, according to the USDA's Friday (Jul 22) afternoon Cattle on Feed report.

 

The increase was a vast rise from the 6.6% decline analysts were anticipating and could cause cattle prices to fall further over the following six months, according to an analyst.

 

The deficiency of pasture forage also led to the number of placements in the two lightest weight classes to increase 14% on year.

 

On the other hand, two other analysts said the surge in placements data should be put in perspective as during this period of time, placements are at its lowest and subsequently, tiny shifts in placements from one month to the next would seem to be rather big.

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