Source: Rita Jane Gabbett, MEATINGPLACE, 11/24/14


Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on Nov. 1, 2014. The inventory was slightly above Nov 1, 2013, and in line with analysts’ expectations.

Placements in feedlots during October totaled 2.36 million, just 1 percent below 2013. On average, analysts were expecting placements to be 4 percent below a year ago, according to a pre-report survey by Bloomberg.

Net placements were 2.26 million head. During October, placements of cattle and calves weighing less than 600 pounds were 690,000. Placements at 600-699 pounds were 570,000. Placements at 700-799 pounds were 462,000, and at 800 pounds and greater were 635,000. For the month of October, placements are the second lowest since the series began in 1996.

Marketings of fed cattle during October totaled 1.69 million, 8 percent below 2013 and even lower than analysts’ average expectation of a 7 percent decline. October marketings are the lowest since the series began in 1996.

Other disappearance totaled 97,000 during October, 28 percent above 2013.

JP Morgan analyst Ken Goldman noted the total cattle inventory in feedlots showed the first increase in over two years.

“Overall, this should add some modest pressure to cattle prices, which, all else equal, benefits Tyson Foods,” he wrote in a note to investors.

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