WASHINGTON, DC – Last Friday’s Cattle on Feed report is considered relatively neutral to bearish due to higher-than-expected placements. According to USDA’s May report, the overall supply of cattle on feed is up nearly 5 percent over last year but almost 1 percent below 2019, and the number of animals marketed throughout April is well above a year ago, but right in line with expectations.
The American Farm Bureau Federation (AFBF) suggests that the level of the increase in placements would normally be extremely bearish news, but year-over-year comparisons should largely be avoided due to last year’s disruptions.
Many producers’ attention will now be on the weather as dry conditions heading into the grazing season are leading to record levels of poor pasture conditions, AFBF Economist Michael Nepveux explains. Add to that feeding costs are driven higher by corn, soybean, and hay prices making it difficult for some producers to keep their animals out of the feedlot until they are heavier, and it’s likely to be a difficult summer ahead for some producers.
(SOURCE: All Ag News)