High U.S. feedlot inventories to affect 2008 cattle prices

by Editor fleischwirtschaft.com
Wednesday, January 02, 2008

Cattle feedlots in the United States have the highest December inventories in at least 10 years and will thus depress prices.

Placement of cattle into feedlots in November was 12% ahead of last year, although marketing was down slightly, meaning a lot of cattle will enter the market the next Northern Hemisphere spring and summer.

According to U.S. Department of Agriculture livestock analyst, Shayle Shagam, this will lead to a price decline in 2008 of about one dollar off the 2007 average.

However, he said, there are strong demand and growing exports which will help absorb some of the supply on the market.

Shagam says cattle prices may hover around the $90 per hundredweight range for most of 2008.