USDA: Feed Grain Markets Affects Cattle Prices

US - In the latest Livestock, Dairy and Poultry Outlook, USDA says rains across much of the mid-United States in late March and early April boosted pasture and range prospects for 2007. Additionally, USDA says given larger corn and wheat planting intentions, grain and cattle prices may display some volatility during the spring and summer in concert with weather conditions.
calendar icon 19 April 2007
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"Despite improving pasture and range prospects, cow slaughter continued at a high rate through March 2007, given the size of the cow inventory, due to inadequate pastures before spring forage growth, harvested forage stocks that have been severely stretched by the late winter snows, and the fourth Cooperatives Working Together (CWT) dairy herd buyout," says USDA. "As grass begins to grow in pastures this spring, beef cow slaughter should decline significantly, as it has in the last couple of weeks, and could remain low through summer with normal or near-normal weather."

USDA also notes calf slaughter continues at a rate well ahead of 2006. Cumulative year-to-date federally inspected (FI) calf slaughter for the week ending March 31, 2007, was 27 percent above the same period of 2006. Despite much higher FI calf slaughter, cumulative veal production for 2007 was up only 12 percent over the same period in 2006, reflecting the relatively light calf slaughter weights as a result of deteriorating pasture conditions through the winter and lack of demand for feeder cattle for grazing or, combined with high corn prices, for feedlot placements from late fall 2006 through winter, says USDA.

Source: AgWeb
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