US feedlots in August brought in 15.0 percent more cattle compared with a year ago, the US Department of Agriculture said on Friday, topping average trade estimates and the highest for the month in four years. Analysts attributed last month's sizable placement increase to ranchers who moved cattle to market earlier than they would have otherwise as prices deteriorated during the second half of August.
Feedyards finally retrieved cattle fattened outside of feedlots for several months on healthy pastures. Less-costly corn also reduced costs for cattle feeders. There were two extra days to process cattle in August than a year ago, analysts said. They also noted that last month's placements seem high in comparison with August 2015's record-low placement result. Friday's USDA report showed August placements at 1.879 million head, up 15.0 percent from 1.632 million last year. That was well above analysts' average forecast of 1.838 million and the biggest for the month since August 2012 at 2.007 million head.
The government put the feedlot cattle supply as of September 1 at 10.135 million head, up 1.0 percent from 9.986 million a year ago. Analysts, on average, had forecast an increase of 1.1 percent. The government said the number of cattle sold to packers, or marketings, grew 18.0 percent in August from a year ago, to 1.868 million head. Analysts projected a 16.7 percent increase from 1.588 million last year. "There's a lot of feed out there at lower prices that helped offset input costs at feedlots," said University of Missouri livestock economist Ron Plain.
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