The annual Cattle report estimated that total cattle inventories in the U.S. were up 3.2 percent year over year at 92.0 million head. From various inventories categories we can calculate an estimated supply of feeder cattle outside of feedlots. For January 1, 2016, this estimate is 25.9 million head, up 5.3 percent from one year ago.
U.S. soybeans slid to a one-month low on Monday as rains across Argentina eased fears over dry weather curbing yields while wheat also fell as uncertainty about demand from top buyer Egypt kept prices under pressure.
The January cattle inventory survey said the U.S. herd has grown for the second consecutive year. According to USDA, the country started 2016 with 92 million cattle and calves, up 3.2% from a year earlier and the most cattle at the start of a year since 2011. The 3.2% increase is the biggest annual inventory increase since 1974. USDA lowered their estimate of the January 2015 cattle inventory by 657,000 head.
Insights about the recent market price shocks and potential for future turbulence were discussed today with more than 2,000 beef producers at the CattleFax Outlook Session held during the 2016 Cattle Industry Convention and NCBA Trade Show.
Would you believe a $6 to $7 corn price prediction? Bill Kirk, a weather statistician and owner of Weather Trends 360, asserts that corn prices could hit the $6.50 to $7 range this summer. According to his weather outlook, 2016 will mean lower yields both in the U.S. and in Brazil, reversing the current supply and demand debacle.