By Kirk Maltais
The USDA reported Friday a higher rate of growth for U.S. cattle inventories than expected by analysts.
In its monthly Cattle on Feed Report, the USDA said that total supplies of cattle on feedlots were 11.3 million head, up slightly from the same time last year. Analysts surveyed by The Wall Street Journal were forecasting inventories to slide slightly, by 0.2% as of July 1 versus the same time last year.
Meanwhile, placements of cattle continue to be slower than last year, although less so than expected by analysts with 1.68 million head logged in June. That is a 2% drop from the same time last year. Analysts were forecasting this figure to slide by 6%.
Marketings were increased, totaling 2.06 million head, up 2% from the same time last year. This fell in line with analyst expectations for the month.
Livestock futures trading on the CME closed trading Friday higher. The most-active cattle contract was up 1.4% to $1.43 per pound while the most-active lean hogs contract rose 0.6% to 96.325 cents per pound.
Write to Kirk Maltais at kirk.maltais@wsj.com
Corrections & Amplifications
This article was corrected on Jan. 20, 2023. Analysts surveyed by The Wall Street Journal were forecasting cattle on feed inventories to slide 0.2% as of July 1 versus the same time last year. Analysts were forecasting placements of cattle to slide by 6%. The original version misstated the forecasts as 0.2 percentage points and 6 points, respectively.
(END) Dow Jones Newswires
07-22-22 1531ET
