December 27, 2006

China's cattle slaughter volume remain stable in 2007

Due to weather conditions, cattle slaughter in China has increased this year. However, beef cattle slaughter would gradually slow in 2007.

Declining profits has led to the increased slaughter of dairy cattle, thus the herd would not be expanding much in January. Heifer numbers have expanded by 16 percent in October 2006 when compared with the same month in 2005. If farmers are not sending cattle to feedlots right now and with beef cattle prices slipping, production in the fourth quarter of 2006 would increase substantially. The current surplus of beef cattle would be marketed in the next few quarters.

As finished cattle are already slaughtered, heifers could be used as replacements for these cattle next year. Meanwhile, prices for finishing cattle would be low due to high corn prices.