CHICAGO, Ill. (Reuters) — Ranchers drove 13.9 percent more cattle into U.S. feedlots in November than the same time a year ago, the U.S. Department of Agriculture reported.
The result exceeded the high end of the range of analysts’ forecasts, partly fuelled by low feed prices in the wake of this fall’s bumper U.S. corn and soybean harvest, said analysts.
They also cited dryness in parts of the U.S. northern Plains, which caused cow calf producers to reduce the number of head on pasture.
The increased placements could weigh on cattle prices this spring, said analysts.
November placements were 2.099 million head, up 13.9 percent from 1.843 million a year earlier. It was above the average forecast of 1.948 million.
The feedlot cattle supply as of Dec. 1 was 11.516 million head, up 8.1 percent from a year ago. Analysts forecast an average 6.7 percent increase.
November marketings, were up 3.2 percent from a year ago to 1.844 million head. Analysts expected a three percent gain.
