Stock exchange news. Last week’s Cattle on Feed report in the USA showed an increase by 3% in comparison to equal period last year, which is a decline by 7% in comparison to January. As of March 01, 2012 the number of cattle on feed is 2.5 % higher than in March 2011.
In February market supplies dropped by 2% in comparison to last year and by 3.3% in comparison to last month.
In addition to Cattle on Feed report, Livestock Slaughter report has also been issued. It shows that in February beef production is 5% less than in January and 0.5% less than last year. Livestock slaughter has also declined in comparison to last month and last year by 5% and by 2.5% accordingly.
Average live weight is 1.6% higher than in 2011 and 0.5% higher than in January.
Consequently, according to the Analytics Team of Commodity Trading Department of , livestock market is currently influenced by differently directed factors. Higher cattle on feed supplies in comparison to last year, higher number of cattle placed on feedlots, and increase of average live weight on the one hand; shortage of cattle on feed supplies (in comparison to last month), market supplies, beef production, and livestock slaughter on the other. The latter factors will provide support to the market.
In addition to the abovementioned, it is also worth considering seasonal decline of demand for beef, which will result in price drop.
According to the Analytics Team of Commodity Trading Department, in the nearest future flat-type situation is to be expected at American livestock market, for the abovementioned factors will keep the price from rapid increase or drop, but in long-term perspective one should consider that this market is traded within bullish trend.
