CHICAGO, Jan 24 (Reuters) – The number of cattle placed in U.S. feedlots in December unexpectedly increased one percent from a year earlier as cheaper feed encouraged them to bring in young cattle for fattening, a government report showed on Friday.
The U.S. Department of Agriculture showed December placements at 1.681 million head, up one percent from 1.664 million a year earlier. Analysts, on average, expected a 2.3 percent decrease.
USDA put the feedlot cattle supply as of Jan. 1 at 10.593 million head, down five percent from a year earlier of 11.193 million. Analysts polled by Reuters, on average, expected a drop of 6.2 percent.
USDA said the number of cattle sold to packers, or marketings, in December was down one percent from a year earlier, to 1.736 million head. Analysts’ forecasted an increase of two percent from 1.745 million last year.
Analysts are expecting Chicago Mercantile Exchange live cattle futures to open 0.300 to 0.600 cent per pound lower on
Monday based on Friday’s USDA report.
