May 23, 2012
US cattle on feed rises against 2011
During April, 1.82 million fed cattle have been marketed, a little higher than the same period of last year, USDA reported.
Placements in feedlots during April totalled 1.52 million, 15% below 2011. Net placements were 1.44 million head.
Deutsche Bank analyst Christina McGlone acknowledged that the report showed fewer cattle on feed than analysts expected on lower placements and higher marketings compared to the forecast. Although it's not the first time she's mentioned it, McGlone did call for a processing facility to close- likely in Texas or Kansas.
"Though imports from Mexico have aided conditions somewhat, the cattle availability does not seem adequate enough to supply four major plants over the intermediate term," McGlone wrote in a report to investors Friday (May 18).
During April, placements of cattle and calves weighing less than 600 pounds were 355,000; 600-699 pounds were 250,000; 700-799 pounds were 380,000; and 800 pounds and greater were 536,000.
Cattle and calves on feed for slaughter market in the US for feedlots with capacity of 1,000 or more head totalled 11.1 million head on May 1. The inventory was 1% below May 1, 2011.