Cattle: Prices Down, Weights Up

Cattle prices fell to a 16-month low in Chicago last week and may continue to drop amid circumstances that suggest meat packers are deliberately slowing purchases.

The USDA said fewer cattle are being brought to market, and the cattle population on feedlots is rising, which suggests animals are being kept longer and fattened to greater weights.

The number of cattle on feedlots in July weighing more than 800 pounds was 19% higher than the above-800 category in July 2014, the USDA said.

“These cattle likely will come off feed in the near future,” the Administration wrote, “potentially resulting in an upswing in marketings in early 2016.”

Like the fed-cattle market, the USDA said feeder cattle also are in a downward trend this quarter.

Cow and heifer slaughter was down by 18% and 14%, respectively, compared to levels from August 2014, which is a sign that producers are holding back cattle to expand their herds. S