CHICAGO, Ill. (Reuters) — The number of cattle placed in U.S. feedlots in May fell seven percent from a year ago as feedyards bought fewer high-priced calves.
Improved grazing conditions in parts of the country allowed ranchers to raise cattle outside of feedlots longer. As well, cattle are hard to come by after several years of drought shrivelled crops and reduced the U.S. herd to its smallest in 63 years at 87.73 million head.
The U.S. Department of Agriculture’s June 1 cattle on feed report confirmed continued tight fed cattle supplies this fall and the likelihood that slaughter cattle and beef prices will remain high, said University of Missouri livestock economist Ron Plain.
The USDA report showed May placements at 1.912 million head, down seven percent from 2.055 million a year earlier.
Analysts had expected a 7.6 percent decrease. It was the smallest placement figure for May since 1.810 million in 2011.
Plain attributed the placement slowdown in part to the lack of readily available animals and ranchers retaining heifers for breeding to rebuild the drought-depleted U.S. herd.
