Bullish Cattle On Feed

[errolanderson]

USDA COF report released this afternoon
pegged Feb placements at only 86% of
year ago levels as compared to the
average trade estimate of 91%. Feb
placements are the lowest since the data
series started in 1996.

Cattle feeding losses have no-doubt
curtailed enthusiasm to place U.S.
feedlot cattle. Expect deferred live
cattle futures to be up sharply on
Monday.

[ALLFARMER]

ASRG is bullish on goats Errol do you have an
forecast or opinion on that?

[ASRG]

HaHa....No Allfarmer I've never owned goats....or had the desire to do so!
A dairyman neighbor once told me people own Jersys because they are too poor to afford cattle, and too proud to own goats!

[errolanderson]

ALLFARMER - no opinion on goats, but certainly have been known to be a goat talking about markets sometimes.

cheers . . . here's to improving April basis levels and a rebounding cattle market this spring.

[chaser]

So Errol what do you think short term market for feeder cattle at auction market will do?

[errolanderson]

chaser . . . must confess my stupity on this question . . . but sense a postiive change in the economics of cattle feeding, but it may take a few months.

But feeders are no doubt going to be cautious buyers this spring with the ongoing bloodletting in the industry.

Sense there is going to be a break in feed costs by late 2013 and into 2014. Looks like there will be good grass to start across Western Canada with the heavy snowpack.

Not qualified to answer your question, but expect tight fed supplies straight ahead to rally back the cattle board into April.