U.S. producers sold 11 per cent more cattle to slaughterhouses in May than what they brought in, solid evidence that the cattle supply is shrinking and by year’s end that smaller supply should mean much higher cattle prices, analysts said.
The U.S. Agriculture Department reported June 17 nearly 10.93 million cattle in feedlots, up four per cent from a year earlier.
However, that supply appears to be shrinking. USDA also said that in May feedlots sold 2.002 million cattle to beef plants, up 7.4 per cent from a year earlier. They replaced those sales with 1.81 million new cattle, or placements.