Cattle numbers outside the range of pre-report estimates
The USDA’s latest Cattle On Feed report had numbers outside the range of pre-report estimates.
Livestock market analyst Scott Brown says the USDA’s Cattle on Feed report shows a significant increase in both cattle on feed and placements. Cattle on feed were up 4.5 percent and placements up 16 percent on the year. “You can look at some of what has been going on in the Dakota’s as part of what is to be attributed to these higher numbers,” he says. “I think we’re also going to continue to see more Mexican calves coming into the US.”
Heifers made up 36 percent of the on feed numbers and Brown says that is a good sign for markets. “It tells me that in terms of the growth of females – we’re slowing that growth down,” he says. “I would not want anyone to read into that yet that we have stopped the expansion going on in beef cow inventory. BUT, we’ve probably slowed the pace dramatically.”
The first preliminary look at the 2017 calf crop was also released on Friday. Brown says the projected 36.3 million head suggests increased cattle supplies through 2018.
During last week’s Weekly Livestock Market Update Brown said he anticipated large increases in the cattle placement number.
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