Managing for Profit
Larger feedlot supply will be on the fed market later this year
The USDA’s latest cattle on feed report shows a lot of cattle were placed into feedlots.
“There were good reasons for placements to be big in April,” said David Anderson, agriculture economist at Texas A&M University, in an interview with Brownfield commodity reporter John Perkins. Higher cash cattle bids and vigorous beef demand played roles. The two percent bump in numbers of cattle on feed implies growing cattle supplies, with more cows and more calves that are now showing up in feedlots, according to Anderson. The larger cattle numbers in this latest report will begin to show up on the fed cattle market later this year. Chicago Mercantile Exchange live and feeder cattle futures were sharply lower Friday, pressured by the USDA numbers.
AUDIO: David Anderson (3 min. MP3)
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