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Ranchers.net

Cattle on feed numbers look bullish



June 23, 2006

by John Perkins

Brownfield



The United States Department of Agriculture's National Agricultural Statistics Service reports that total U.S. cattle on feed as of June 1 were at 104% of a year ago, below the average guess of 106.1% and the range of 105% to 107%. According to the Ag Department, that's the second highest June 1 inventory figure since 1996.



Placements during May 2006 were also lower than expected at 86%. Before the report, analysts were expecting 88.7% to 98.7%, with an average estimate of 93.5%.



May marketings came out at 109% of a year ago, compared to estimates for 104% to 109% and an average of 107%.



Overall, the numbers look bullish for Chicago Mercantile Exchange live and feeder cattle futures when trade resumes on Monday. David Kohli of Ford and Young Futures, Fort Wayne, Indiana, says that CME traders were expecting the tight placement number, which has been reflected the recent futures activity. Kohli expects cattle to start the week $.75 to $1 higher and that bull spreading should be a major feature of the market.





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