Cattle inventory smallest since surveys began in 1973

  By Rita Jane Gabbett on 7/27/2009

 

 USDA on Friday released its monthly Cattle on Feed report as well as it Cattle Inventory report, which were generally in line with market expectations and provided further evidence of a shrinking cattle herd.

 

The total cattle inventory on July 1, at 101.8 million head, was 1.5 percent lower than a year ago and indicated the smallest herd since USDA started tracking the inventory in 1973.

 

Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 9.8 million head on July 1, 2009. The inventory was 5 percent below July 1, 2008.

 

Placements in feedlots during June totaled 1.39 million, 8 percent below 2008, USDA reported, the second lowest placements for the month of June since the series began in 1996. Market analysts were looking for about a 7 percent drop, according to Dow Jones.

 

Cattle on feed July 1, 2009, from all feedlots in the United States, totaled

11.6 million, down 5 percent from the 12.2 million on July 1, 2008.

 

Marketings of fed cattle during June totaled 1.99 million, 1 percent above 2008. This is the second-lowest fed cattle marketings for the month of June since the series began in 1996.

 

“This suggests higher than expected cattle prices over the near and medium term, which all else equal could be mildly negative for packers such as Tyson,” J.P.Morgan analyst Ken Goldman wrote in a note to investors.

 

The CME’s Daily Livestock Report summed up the report like this: “Overall, the take away from this report is that the U.S. cattle industry continues to contract and cattle numbers will remain smaller for the next two years, possibly even longer.”

 

 

 

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June red meat production hits record high

June red meat production hits record high

As reported by meatingplace.com

By Tom Johnston on 7/27/2009

Commercial red meat production for the United States totaled 4.16 billion pounds in June, up 3 percent from the 4.05 billion pounds produced in June 2008, according to USDA’s National Agricultural Statistics Service. Beef production, at 2.29 billion pounds, was 1 percent higher than the previous year. Cattle slaughter increased 1 percent to total 2.98 million head. The average live weight increased by 8 pounds to 1,269 pounds. Veal production totaled 11.5 million pounds, 2 percent lower than in June last year. Calf slaughter totaled 77,200 head, up 2 percent. The average live weight, at 251 pounds, was down 16 pounds. Pork production totaled 1.85 billion pounds, up 5 percent from the previous year. Hog kill totaled 9.18 million head, up 3 percent from June 2008. The average live weight, at 269 pounds, was up 3 pounds. Lamb and mutton production, at 13.9 million pounds, was up 6 percent from June 2008. Sheep slaughter totaled 203,000 head, up 6 percent. The average live weight, at 137 pounds, was unchanged. January-to-June 2009 commercial red meat production was 24.3 billion pounds, down 3 percent from 2008. Accumulated beef production was down 3 percent from last year; veal was down 1 percent; pork was down 3 percent from last year; and lamb and mutton production was down 5 percent. June 2008 contained 21 weekdays (including zero holidays) and four Saturdays. June 2009 contained 22 weekdays (including zero holidays) and four Saturdays.

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