Allendale Projects Significant Increase in February Placements Ahead of USDA ReportsTue, 18 Mar 2014 16:16:14 CDT
The USDA’s Cattle on Feed and Cold Storage Estimate reports are due out March 21st and February placements are expected to be 7.9% higher than last year, according to analysts at Allendale.
Profits on outgoing cattle during February were pegged at $191 per head. That is the highest profit since April 2010. Those profits were driven in large measure due to significantly lower average February corn prices of $4.53 in western Kansas. The price the previous month had been $4.54 and the price in 2013 a whopping $7.30.
September through January placements averaged 5% over the previous year’s figure, so it is uncertain what February’s 7.9% projection will mean in relation to the corresponding late summer to early fall slaughter period.
Allendale is projecting a 4% lower marketings total in February compared with February of 2013 and the total cattle on feed number as of March 1st is expected to come in 1.2% lower than last year.
Total pork stock levels are expected to be 633 million pounds, far above the five-year-average of 594 million pounds at the end of February. That is also a 31-million-pound increase from the previous months.
Beef stocks are projected to come in at 413 million pounds, a drawdown of 17 million pounds from January as compared to a five-year-average drawdown of 12 million pounds.
Allendale projects cattle on feed to be 98.8% of the previous year, placements at 107.9% and marketings at 96%.
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