Yesterday, the US Cattle on Feed Report was released and in my opinion they should get the attention of producers but also consumers. To get a better handle of the situation I asked Kevin Grier of the George Morris Center, to provide a summary:
–Cattle and calves on feed inventory was 4 percent below June 1, 2008.
–Placements in feedlots during May totaled 14 percent below 2008. This is the second lowest placements for the month of May since the series began in 1996.
–Marketings of fed cattle during May totaled 9 percent below 2008. This is the lowest fed cattle marketings for the month of May since the series began in 1996.
–The actual numbers were close to analysts’ pre-report estimates as tabulated in the Daily Livestock Report, June 18. The placement total might be considered bullish for the deferred months which could result in futures getting a boost on Monday.
I would like to thank Kevin for his comments and encourage people to subscribe to any of Kevin’s publications; Canadian Cattle Buyer, Grocery Trade Review, Canadian Boxed Beef Report, Canadian Chicken Market Review or the Canadian Pork Review.