Published on: 16:19PM Mar 23, 2009
On Friday the USDA released their estimate for the March 1st US cattle on feed inventory which was 5.3% less than last year and the smallest for the date since 2004. Cattle placements into feedlots during February were 2.6% less than last year but had the best per day placement since 2005. (February 2008 had 29 days). Cattle were placed at an average weight 2 lbs. less than February 2008. The April 1st near slaughter ready cattle on feed inventory is estimated to be 7.1% smaller than the 3 year average. Tighter cattle supplies are expected to persist into the summer which is bearish for beef production. We can help you forecast, contract, and execute futures for your principal commodity products. If you would like to learn more call 888-423-4411.
Cattle are typically placed on feed for roughly 150 days before coming to slaughter. The cattle on feed inventory is a good barometer of forthcoming beef production levels.
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