U.S. feedlots' young cattle purchases up 2.8% year-over-year to 1.714 million head in February, USDA says; jump in purchases driven by expectations that profits would grow amid rising prices for slaughter-ready livestock, industry insider says
March 26, 2012
– U.S. feedlots increased young cattle purchases 2.8% year-over-year to 1.714 million head in February, driven by expectations that profits would grow amid rising prices for slaughter-ready livestock, according to a U.S. Department of Agriculture report, Bloomberg reported March 23.
Willingness of feedlots to buy, or place, young cattle at near record-high numbers may have been spurred by optimism that slaughter-ready cattle prices would rise further, according to Daniel Blutzer, research director at Frontier Risk Management.
Feedlots sold nearly 1.755 million animals to meatpackers in February, down 2% year-over-year, according to the USDA.
The primary source of this article is Bloomberg, New York, New York, on March 23, 2012.