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Allendale expects increased placements

Ahead of USDA’s cattle on feed update Friday, Allendale Inc. expects a big jump in placements against lower marketings and total number of cattle on feed.

Allendale sees February 2014 placements at 7.9% larger than February 2013 thanks to improved profit margins and lower than a year ago feed costs. Marketings are expected to be down 4% on the year due to the tight supply of market ready cattle. The total number of cattle on feed on March 1 is expected to be 1.2% below a year ago.

Also out Friday is USDA’s cold storage report. Allendale is anticipating higher than average pork stocks at 633 million pounds and smaller than normal beef supplies at 413 million pounds.

Both reports are out Friday, March 21 at 3 PM Eastern/2 PM Central.