The number of cattle placed in U.S. feedlots rose unexpectedly last month, government data showed Friday, which analysts said set the stage for a larger-than-expected beef supply this winter.
Placements, which came in about three per cent more than the average trade estimate, helped to lift cattle supply in feedlots by five per cent from a year ago — the 17th straight month of increases.
A drought in southwest that dried up pastures, a drop in corn prices, and higher fed cattle prices combined to put more cattle in feedlots in September, analysts said.
Despite that larger supply, analysts doubt there will be bargains on beef at grocery stores. Higher feed costs and a sharp drop in imported beef have pushed supermarket beef prices to record highs and analysts expect even higher prices next year as the U.S. cattle herd dwindles.
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