United States Cattle on Feed Down Slightly, Sets Negative Tone For MarketsFri, 22 Jan 2016 17:00:20 CST
The latest cattle on feed report has a negative tone with on feed and placements numbers coming in higher than trade expectations. That's according to Market Analyst Tom Leffler of Leffler Commodities. The number of cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on January first. The inventory was slightly below last January and 5.1 percent below the five year average. Kansas was up two percent, Nebraska was down two percent and Texas was down three percent versus a year ago. Leffler said this was the fourth lowest January on feed number of the past 21 years. The inventory included 7.16 million steers and steer calves, up three percent from the previous year. This group accounted for 68 percent of the total inventory. Heifers and heifer calves accounted for 3.41 million head, down seven percent from 2015. The January first heifers and heifer calves inventory was the lowest percent of total January inventory since the series began in 1996.
Leffler said placements were the most negative figure out of the whole report. USDA reported placements in feedlots during December totaled 1.53 million head, one percent below 2014. That was 8.3 percent lower than the five year average. Kansas was up two percent, Nebraska was up one percent and Texas was down six percent versus a year ago. Net placements were 1.45 million head. During December, placements of cattle and calves weighing less than 600 pounds were down 14.8 percent at 375,000 head, 600-699 pounds were down 2.7 percent at 355,000 head, 700-799 pounds was up 6.9 percent at 355,000 head, and 800 pounds and greater were at 440,000 head, up ten percent from last year.
"This was the second smallest December placements of the past 20 years, it's also the second lowest placement number for 2015," Leffler said. "This also comes in as the third lowest placement of the past 34 straight months."
Radio Oklahoma Ag Network's Leslie Smith interviewed Tom Leffler of Leffler Commodities. Click or tap on the LISTENBAR below to listen to the full interview.
Marketings of fed cattle during December totaled 1.67 million head, one percent above 2014. Leffler said December marketings were the fourth lowest of the past 20 years. Other disappearance totaled 78,000 head during December, eight percent above 2014.
USDA also released its Cold Storage report. Leffer said there wasn't much change over last month, but supplies were much larger than a year ago. Total red meat supplies in freezers were down one percent from the previous month but up 12 percent from last year. Total pounds of beef in freezers were up one percent from the previous month and up 16 percent from last year. Frozen pork supplies were down three percent from the previous month but up eight percent from last year. Stocks of pork bellies were up 30 percent from last month and up 13 percent from last year. While the year ago numbers were large, Leffler said they weren't quite as large as what the trade was looking for. With no friendly news there, he is afraid there could be downside in the markets on the opening at 9:05 am Monday morning.
Click here for USDA's Cattle on Feed report.
Click here for USDA's Cold Storage Report.
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