Bullish Cttle Report

In a recent Idaho Cattle Association newsletter there was an item that read, "Cattle on Feed Bullish for Markets as November placements were 89% of year ago levels. This is the 18th of 21 months for year over year placement declines." Whenever there is good news we want to spread it so I called ICA Executive Dir. Wyatt Prescott. "As many of your listeners are probably aware, the markets have seen a very dramatic downward trend in the last month or so and the cattle on feed report came for November and it was bullish for the markets whereas November placements were 89% of a year ago level so we placed less cattle in November in the feedlots for finish which means we are already at low levels and this means we are still at those low levels so the supply is not as great as was expected. The very interesting part of that report is looking a little deeper into the fact that 18 of the last 21 months the year over year placement for that month has declined. So this whole supply situation, even though nationwide we are rebuilding our maternal cow herd, the supply situation on feeder cattle and immediate supply of beef is still very tight which is a positive indicator for the direction the markets can look to. I thought that was a very good bit of news.