Published on: 11:00AM Feb 23, 2009
On Friday the USDA estimated that the February 1st cattle on feed inventory was 5.7% less than last year and the smallest for the month since 2004. Cattle placements into feedlots during January were 4% larger than the prior year. The March 1st near slaughter ready cattle supply is estimated to be 9% less than the 3 year average which suggests that beef production should continue to trend below year ago levels next month. As reflected by the chart below, slaughter ready cattle supplies are anticipated to remain tight through the spring. That being said, even with the lesser supply of slaughter ready cattle, existing cattle supplies appear to be more than adequate to meet current demand. We can help you contract, forecast and execute commodity contracts and futures. If you would like to learn more please feel free to give us a call at the number below. Thank you for your business.These comments and data are provided for information purposes only and are not intended to be used for specific trading strategies. Past financial results are not necessarily indicative of future performance. Any examples given are strictly hypothetical and no representation is being made that a person will or is likely to achieve profits or losses similar to those examples. Neither the information, nor any opinion expressed constitutes a solicitation to buy or sell futures or options on futures contracts or OTC products. Covered parties (as defined below) shall not be liable for any direct, indirect, incidental, special or consequential damages of any kind, whatsoever (including attorney’s fees and lost profits or savings) in any way due to, resulting from, or arising in connection with this email, including it’s content, regardless of any negligence of the covered party including but not limited to technical inaccuracies and typographical errors. “Covered Parties” is defined as American Restaurant Association Inc., ARA Trading and the employees of both companies.Commodity trading involves risks, and you should fully understand those risks before trading.