Source: Rita Jane Gabbett, MEATINGPLACE, 3/24/14


USDA reported cattle placed in feedlots during February totaled 1.65 million, 15 percent above February 2013. On average, analysts polled by Urner Barry were expecting a 9 percent rise.
According to USDA’s monthly Cattle on Feed report, cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.8 million head on March 1. The inventory was 1 percent below March 1, 2013, and in line with analysts’ expectations.

Fed cattle marketings during February totaled 1.55 million, 3 percent below 2013 and in line with market expectations. Marketings for February are the lowest for the month since the data series began in 1996.
Other disappearance totaled 71,000 during February, 18 percent above 2013.

Report seen positive for processors
“We view these data as potentially supportive of Tyson’s Beef segment margin down the road,” wrote J.P. Morgan analyst Ken Goldman in a note to investors. “All else equal, the more cattle available, the lower the segment’s cost base, and the higher that margins likely will be.”

Analysts noted in the Daily Livestock Report, however, the report portends fewer cattle in the future.  
“Placing cattle now means they cannot be placed in the future and the spring calf crop will not be available until fall or winter,” the analysts wrote. “Bottom line is that these placements are likely setting us up for low placements once again this summer and another Q1 cattle hole next year.”

Steve Meyer and Len Steiner Inc. publish the Daily Livestock Report.

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