US cattle numbers in feed lots decline.
Cattle on feed numbers in US feedlots as at January 1, 2009, fell by 7pc year-on-year, to 11.23 million head, according to the latest US Department of Agriculture (USDA) cattle on feed report.
Cattle placements during December also experienced a fall, declining 3pc on December 2007, to 1.65 million head – a volume lower than analysts’ pre-report estimates.
In contrast, cattle marketed in December rose 2pc on 2007, to 1.68 million head, exceeding analysts’ pre-report estimates.
Some reports have indicated that the US cattle on feed population has already peaked.
They suggest the numbers will now slowly decline heading into 2009. Reports also indicate that US forward contracting activity for fed cattle is lagging behind year ago levels due to inadequate margins. This factor, combined with uncertain business conditions in the coming months, is pointing to a continuation of feedlots limiting numbers on feed.