There will be more beef than expected this summer in the United States as the number of cattle placed on feed in January jumped 15 percent over the same month last year.
Analysts were startled by the numbers in the U.S. Department of Agriculture cattle on feed report issued Feb. 18.
January placements were up 15 percent while the total number of cattle on feed was up eight percent over last year.
Marketings in the month were also up, but only by one percent.
Futures prices were expected to fall this week.
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“Cheap corn, dry pasture conditions and improved feeding margins appear to be driving the increase in cattle placements,” said University of Missouri analysts Ron Plain and Glenn Grimes.
Over the last 13 months, placements have averaged 8.9 percent above year-earlier levels, they said.
“This increase is surprising given that the calf crop has been below year-earlier levels each of the last four years, and the number of cattle imported in 1999 was smaller than in 1998,” they noted.
The USDA report also indicated that younger cattle are being placed on feed. Light placement weights should mean light slaughter weights.
Light placement weights also mean that cattle will be on feed longer.
