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USDA's April cattle-on-feed report showed 4.2 million heifers and heifer calves on feed, up 14% from a year earlier and about 36% of total feedlot inventory. Total cattle on feed was 11.7 million head, the second-highest April 1 figure on record.
USDA analyst Shayle Shagam expects feeder prices, now about $145 per hundredweight, to fall into the high $130s in the third quarter.
Heavy feedlot placements and heifer retention point to more fed beef supply and lower feeder prices, which weighs on cattle futures in the coming months.
brownfieldagnews.comApr 23, 2018After 144 past bearish report events, Live Cattle moved a median -0.1% over 5 sessions (49% higher; middle half -1.1% to +0.9%), and +0.5% over 20.
After 126 past bearish report events, Feeder Cattle moved a median +0.1% over 5 sessions (52% higher; middle half -1.3% to +2.0%), and +0.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Cattle-on-feed report showed record-high heifer placements and the second-highest April inventory, signaling heavy summer beef supplies and bearish futures sentiment.
The cattle-on-feed report showed record-high heifer placements and large inventories, which implies heavy supply and weaker prices ahead.
