Victor: Cattle placements seen up, marketings down
June Placements are expected to be 5.1% larger than last year. Cattle feeders averaged profits on out-going marketings of $29 per head in June. This makes it five months in a row of feedlot profits. Additionally, during June corn prices were lower. The July corn futures contract averaged 347 1/2 in June compared with 368 1/4 in May. Cattle placed in June will be marketed from October through February.
Allendale anticipates a Marketing total 0.7% smaller than June of 2009. There is no calendar adjustment this month. Feedlots are working off the lower placements posted from November through February.
Total Cattle on Feed as of July 1 will be 1.7% larger than last year.
Allendale projects a 428 million lb total pork stock level for the end of June. Our estimate implies a 20 million lb decrease from the previous month when typically stocks decline by 33 million lbs.
By Joe Victor, Allendale