Published on: 16:58PM Nov 21, 2008
This afternoon the USDA released their cattle on feed report for November. First we remember that cattle are typically in a feedlot for 150 days before coming to slaughter and the cattle on feed report can be a barometer of forthcoming beef production. The November 1st the cattle on feed inventory was 6.7% less than last year and the smallest for the date since 2002. Cattle placed into feedlots during October were 10.5% less than 2007 although the average weight of the cattle placed was 1.7% heavier than a year ago. The December 1st near slaughter ready cattle supply is projected to be roughly 15% less than the 3 year average for the date suggesting that beef production could continue to trend below year ago levels. In a normal economic environment, these kind of cattle numbers (or lack of) could be very bullish for the cattle and beef markets. But this is definitely not a normal economic environment. We can help you dig deeper into your contracts, forecast and manage your beef and other commodity products. If you would like to learn more please feel free to give us a call or reply to this email.
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