US Cattle on Feed Down Two Percent, Leffler Calls Report NeutralFri, 20 Jun 2014 15:28:58 CDT
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 June 1, 2014. In the monthly cattle on feed report released by the US Department of Agriculture on Friday afternoon showed the inventory was 2 percent below June 1, 2013.
Placements in feedlots during May totaled 1.91 million, 7 percent below 2013. Net placements were 1.81 million head. During May, placements of cattle and calves weighing less than 600 pounds were 435,000, 600 - 699 pounds were 290,000, 700 - 799 pounds were 477,000, and 800 pounds and greater were 710,000.
Marketings of fed cattle during May totaled 1.87 million, 4 percent below 2013. May marketings are the lowest for the month since the series began in 1996.
Other disappearance totaled 101,000 during May, 1 percent above 2013
Tom Leffler of Leffler Commodities characterized the report as neutral, as the numbers came in very close to what the trade was looking for. You can hear his analysis by clicking on the LISTEN BAR below. Leffler says today's numbers were almost exactly what the trade's average pre-report estimates were.
"This report is defiantly neutral, if not a little slightly bearish, because some in the trade were actually looking for lower numbers than the pre-report estimates were," Leffler said.
Leffler says since the May Cattle on Feed report we have seen August live cattle advance $7.95 upward and August feeder cattle price has gone more than $23 higher.
"There are tight supplies out there, but the bottomline is this upside has been more technically and fund-driven in the futures market than anything else," Leffler said.
On Monday, Leffler says cattle should trade lower and they could easily take out the lows that were made in this week's feeder and live cattle futures.
On Friday USDA did not release the latest cold storage report. Leffler says that report will be released at 2pm on Monday, June 23d.
Click here to read the full USDA Cattle on Feed report.
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