The Cattle On Feed Report will be released this Friday and Allendale expects that June Placements will be 9.1% smaller than last year. This would represent the fourth month in a row of lower placements. Feedlots continue to react to corn prices as well as the smaller supply of available feeders at this time. Cattle placed in June will be marketed from October through February.
Allendale expects a Marketing total that is 2.4% below June of last year. Market ready cattle numbers may begin to tighten as we transition to the lower supply period in the coming months.
Cattle on Feed total as of July 1 will be the smallest July 1 total in four years. Our placement model suggests slaughters from feedlot cattle may remain below last year levels from now through the remainder of the year. See all our estimates below.
Also scheduled for release at 2 p.m. on Friday will be the July 1st Cattle Inventory Report. Allendale is estimating the All Cattle and Calves category at 104.25 million head or 99.5% of last year’s numbers. There continues to be a slow contraction of cattle numbers that is now in its third year. Drought in 2006 and 2007 caused liquidation of the cowherd and this liquidation continues in 2008 due to declining pasture acreage. This report will more than likely show declines in calf crop numbers for 2008, 2009 and 2010. Allendale’s estimates can be found in the table below.
If you have any questions, please call Rich Nelson, Director of Research at 800-262-7538 800-262-7538 or E-mail email@example.com www.allendale-inc.com