USDA livestock analyst Michael McConnell says Friday’s cattle-on-feed report showed larger-than-expected inventories due to rising placements and slower marketings. “We have more animals coming into the feedlots, fewer of them leaving, and so that is how we end up with the higher inventory on May 1 versus a year ago,” McConnell said. April placements increased six percent from last year while marketings declined ten percent. McConnell said strong fed cattle prices are limiting packer margins and slowing slaughter rates. “Margins for packers are not as strong now.”
