News

Cattle on feed numbers near estimates

USDA's monthly cattle on feed numbers came out pretty near the pre-report estimates. According to Brownfield analyst and Allendale broker David Kohli the numbers arepretty much neutral and while there weren't many surprises, numbers of feedlot placements greater than a year ago are bearish for deferred cattle futures, especially the October through December months.

The Ag Department reports that as of April, the total number ofcattle on feed in the U.S. was down 5% from a year ago at 11.152 million head, right at the low end of the fairly narrow range of estimates. March placements were up 4% from last year at 1.802 million head, a little bit above the average of analysts' estimates. Marketings for March totaled1.828 million head, 1% less than last year. Other disappearances of 50,000 head were 21% less than a year ago.

USDA's next cattle on feed report is out Friday, May 22.