Supplies are going to get very tight, predicts expert.
It is still possible that supplies of fattened cattle will be very tight in the U.S. toward the end of the year, despite a jump in placements in April at twice the pace that the market expected, a leading analyst says.
Prices of live cattle - that is, those ready for slaughter - tumbled the maximum daily limit in Chicago to a five-month low on data showing the number of animals placed for finishing in U.S. feedlots jumping 9.9% last month.
The rise was way above a market forecast of a 4.3% increase, and put placements at nearly 1.8-million head, the second-highest April figure since the USDA began publishing this data series in 1996.
Market sentiment was further damaged by separate statistics showing a rise of 20%, year on year, to 442.8 million lbs. in the amount of beef in cold storage as of the start of this month – the highest figure for 37 years.
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