USDA's monthly cattle on feed update showed a much larger than expected drop in placements during April. 

U.S. placements on to feed last month came out at 1.52 million head or 85% of a year ago, towards the low end of estimates and less than the average guess of 88.4%. That decline's linked to the lower supply of feeders and is expected to lead to a tighter supply of market ready numbers and even higher beef prices later this year. 

With packers slowing down meat production, marketings were pegged at 1.82 million head, up slightly on the year, 8,000 head, when most analysts were anticipating a decrease. 

The total amount of cattle on feed in the U.S. as of May 1 was reported at 11.1 million head, down 1% from a year ago and below the range of pre-report expectations. 

Other disappearances were up 30% from last year at 78,000 head.

Brownfield AgNews

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