U.S. feedlot cattle placements hit nearly 20-year low

Report called neutral for CME live cattle futures

By via Canadian Cattlemen

(USDA.gov via Flickr)
(USDA.gov via Flickr)

A Handbook for Ranch ManagersChicago | Reuters — The number of cattle placed into U.S. feedlots last month declined four per cent from a year ago to their lowest level for October since the government began tabulating the data in 1996, a U.S. Department of Agriculture report showed on Friday.

October’s placement results nearly matched forecasts by analysts, who cited burdensome supplies of heavier animals that weighed on cattle prices and eroded profit for feedyards.

 Planned Grazing: A Study Guide and Reference ManualAbundant grazing pasture and affordable feed also allowed ranchers to grow cattle outside of feeding pens longer as leverage against lower prices for their animals.

USDA’s data on Friday indicated the number of cattle placed on feed by weight class continued to decline year-over-year for all categories except that above 800 lbs.

Environmental & Natural Resource Economics: The Austrian View  Cattle that were put in feedlots last month should begin showing up at packing plants in early spring 2016, which could exert modest price pressure at that time, the analysts said.

Friday’s USDA report showed October placements at 2.281 million head, down four per cent from 2.368 million last year, and close to analysts’ average forecast of 2.273 million.

Reconnaissance Marine MCI 03.32f: Marine Corps Institute The Betrayed: On Warriors, Cowboys and Other Misfits Combat Shooter's Handbook USDA put the feedlot cattle supply as of Nov. 1 at 10.794 million head, up two per cent from 10.571 million a year ago. Analysts, on average, had forecast a 2.2 per cent gain.

The government said the number of cattle sold to packers, or marketings, declined three per cent in October from a year ago, at 1.63 million head.

The Essence of Liberty: Volume I: Liberty and History: The Rise and Fall of the Noble Experiment with Constitutionally Limited Government (Liberty and ... Limited Government) (Volume 1)  The Essence of Liberty: Volume II: The Economics of Liberty (Volume 2) The Essence of Liberty: Volume III: A Universal Philosophy of Political Economy (Liberty: A Universal Political Ethic) (Volume 3)Analysts projected a four per cent drop from 1.685 million last year.

Other than the marketing outcome that was slightly larger than expected, the results were generally neutral across the board, said Allendale Inc. chief strategist, Rich Nelson.

“This makes four months in a row of placements lower than last year, insuring manageable supplies through the first-quarter slaughter period,” he said.

Jim Robb, director of the Colorado-based Livestock Marketing Information Center, said the continued trend of yearly increases in the 800-lb. category suggests an ongoing trend as the industry builds the overall cattle inventory.

“There is plenty of forage and increasing wheat pasture in most of the country to hold animals and to continue this pattern of placing heavier-weight cattle,” he said.

USDA’s generally neutral report should have little influence next week on Chicago Mercantile Exchange live cattle investors, who will likely focus on Friday’s prices for slaughter cattle and beef at wholesale, analysts said.

Theopolis Waters reports on livestock futures for Reuters from Chicago.

A Handbook for Ranch ManagersA Handbook for Ranch Managers.  In keeping with the “holistic” idea that the land, the livestock, the people and the money should be viewed as a single integrated whole: Part I deals with the management of the natural resources. Part II covers livestock production and Part III deals with the people and the money. Not only would this book make an excellent basic text for a university program in Ranch Management, no professional ranch manager’s reference bookshelf should be without it. It is a comprehensive reference manual for managing the working ranch. The information in the appendices and extensive bibliography alone is worth the price of the book.

You might also be interested in the supplement to this Handbook: Planned Grazing: A Study Guide and Reference Manual.

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About Land & Livestock Interntional, Inc.

Land and Livestock International, Inc. is a leading agribusiness management firm providing a complete line of services to the range livestock industry. We believe that private property is the foundation of America. Private property and free markets go hand in hand—without property there is no freedom. We also believe that free markets, not government intervention, hold the key to natural resource conservation and environmental preservation. No government bureaucrat can (or will) understand and treat the land with as much respect as its owner. The bureaucrat simply does not have the same motives as does the owner of a capital interest in the property. Our specialty is the working livestock ranch simply because there are so many very good reasons for owning such a property. We provide educational, management and consulting services with a focus on ecologically and financially sustainable land management that will enhance natural processes (water and mineral cycles, energy flow and community dynamics) while enhancing profits and steadily building wealth.
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