Source: Rita Jane Gabbett, MEATINGPLACE, 5/23/16

USDA reported on Friday cattle placed in feedlots during April totaled 1.66 million head, up 7 percent from a year ago, well beyond what analysts were expecting, which was actually a nearly 2 percent decrease.

“This year-over-year increase in placements during the past three months suggests that fed cattle prices could see some downward pressure as we get into the fourth quarter of 2016, from an increased supply standpoint,” wrote the analysts in today’s Daily Livestock Report, published by Steve Meyer and Len Steiner, Inc.

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.8 million head on May 1, 2016. The inventory was 1 percent above May 1, 2015. This, in spite of the fact that April had one less slaughter day this year than last year.

Net placements were 1.59 million head. During April, placements of cattle and calves weighing less than 600 pounds were 334,000 head, 600-699 pounds were 225,000 head, 700-799 pounds were 390,000 head, and 800 pounds and greater were 715,000 head.

Marketings of fed cattle during April totaled 1.66 million head, 1 percent above 2015, and also impressive given there was one less slaughter day.  

Other disappearance totaled 76,000 head during April, 15 percent above 2015.

The DLR analysts also noted the industry is not experiencing that back up of cattle that it did last year. “This trend of heavier placements seems to be due to cattle feeders’ preference to bring in heavier weight animals as they are usually heartier and require fewer days on feed,” they wrote.

For more stories, go to www.meatingplace.com.