Analyst: Fewer cattle could lead to bump in prices
US - A decrease in the inventory of cattle and calves on feed in the U.S. this month should help maintain current prices and possibly add “a little positive bias” to the cattle market, according to market analyst Dan Zwicker of AgriVisor Services.
25 May 2007
1 minute read
“There is less inventory than a year ago, which could be somewhat friendly (to the cattle market),” Zwicker said.
An increase in marketings of fed cattle also could be supportive to the market, according to Zwicker.
USDA reported marketings of fed cattle in April tallied 1.82 million head, up 2 percent from the same time last year.
“The thing that probably stands out the most in this report is the marketing number, which says the feedlots are current,” the analyst said.
“That should be a generally supportive influence to the marketplace (this) week.”
The report in general came in close to expectations and therefore is not likely to be a “big market mover,” Zwicker said.
“The market mostly is in a sideways-type of situation. I don’t think the (May cattle on feed) report changes that.”
While the overall cattle inventory was down compared to a year ago, the 11.3 million head is the second highest on record for May 1 since 1996, according to USDA.
Source: Illinois Farm Bureau
