Exchange news. The 6-month report of US Department of Agriculture was issued on January 27; it is devoted to live cattle inventory, which has shown another decline.
All cattle and calvesas of January 1, 2012 totaled 908 million head, which is 2% below last year’s value. This is the lowest inventory since 1952.
According to Cattle on Feed report, also issued in January, in December cattle on feed was 6% below last year’s value and 17% below the value in November 2011. At the same time, the number of heads in feedlots as of January 1, 2012 was 3% above year’s value, but 1% below the value in December.
In December the number of heads taken from feedlots for marketing was 2% below last year’s value.
КIn addition to Cattle on Feed, Livestock Slaughter Report has been issued. According to the report, beef production in December 2011 is 6% below the value in December 2010 and 1% below the value in November. Livestock Slaughter in December has also dropped by 6% in comparison to last year.
At the same time, non-milk cows slaughter has risen by 5% in comparison to December 2010 and by 14% in comparison to December 2009. The remarkable fact is that similar matters happened only in 1996 and was also connected with extremely dry weather in southern regions of the USA.
During the period of January 13-20 livestock slaughter has dropped from 653 ths. head, to 628 ths., and beef production accordingly from 506 mln. pounds to mln.
Consequently, according to the analysts of the Department of Derivatives Trading, judging by the negative dynamics of slaughter, marketing, and cattle on feed in the situation when all cattle and calves in the USA has dropped by 2%, price is going to continue long-term bullish trend.
