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Less cows

Red Robin

Well-known member
US cattle herd in liquidation mode

North Queensland Register - Australia

Friday, 27 July 2007

The United States cattle herd is back in contraction mode as a result of last year's severe drought in the southern plains and this year's drought in the country's southeast and western regions, according to Meat and Livestock Australia.


MLA says the US herd totalled 104.8 million head on July 1, which was 0.4pc (or 400,000 head) lower than a year earlier.

The high cow slaughter witnessed over the past year was reflected in the beef cow inventory of 33.35 million head, down 100,000 head and the smallest July 1 cow herd since 1990.

The rate of decline in the beef cow replacement herd caught analysts by surprise, with numbers down 6pc on a year ago, as opposed to pre-report forecasts of just a 2.3pc reduction.

MLA says the decline in heifers for beef cow replacement indicates that US beef producers have not only cut short their herd rebuilding efforts but they are truly in the liquidation phase.

The decline also reflects the high feed costs - corn prices have risen 50pc in the last 12 months due to ethanol demand - and profit uncertainty facing US cattle producers.

MLA says the US herd would normally be in a strong rebuilding phase at this stage of the 10-12 year US cattle cycle, but that has ended after just two years of expansion.

MLA says the smaller cow herd and calf crop is expected to constrain growth in US beef production over the next two years.



This should be bullish for US domestic beef prices, particularly for lean beef, and should have a flow-on effect to imported beef prices.



SOURCE: Livestock markets information from Meat and Livestock Australia updated daily on FarmOnline.



nqr.farmonline.com.au
 

Denny

Well-known member
Well were expanding at 60 to 70 head a year at present but I'm 39 alot of retirement age farmer/ranchers here are cutting back or quiting all together.
 
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