CHICAGO (Reuters) — The number of cattle placed in U.S. feedlots in January increased nine percent from a year earlier as record-high prices for cattle encouraged feedlots to bring in young calves for fattening, a government report showed on Friday.
The U.S. Department of Agriculture report showed January placements at 2.029 million head, up nine percent from 1.869 million a year earlier. Analysts, on average, expected a 2.5 percent increase.
USDA put the feedlot cattle supply as of Feb. 1 at 10.760 million head, down three percent from 11.07 million a year earlier. Analysts polled by Reuters, on average, had expected a drop of 4.1 percent.
The government said the number of cattle sold to packers, or marketings, in January was down five percent from a year earlier, to 1.788 million head. That was in line with the analysts’ forecast of a drop of five percent from 1.892 million last year.
USDA revised last year’s on-feed, placement and marketing figures, analysts said.
Analysts expect deferred Chicago Mercantile Exchange live cattle futures to open 0.250 cent to 0.750 cent per lb lower on Monday based on Friday’s USDA report.
