May 4

5/4 - In the April 24th Cattle on Feed report, the USDA said new placements onto feedlots in March were down 22.7% from a year ago, and that the April 1st feedlot inventory fell to 11.3M head, 5.5% below last year. A feedlot supply backup has led to the drop in new placements. Lack of processing capacity has left feedlots with no place to send finished cattle for slaughter. Since mid-March, cow slaughter is down roughly 25%. The shortfall in processing capacity has pummeled cattle prices while at the same time boosted meat prices due to reduced supply. Cattle futures that averaged $125.17/cwt in January, have plunged to $87.25. Conversely, retail beef items, particularly rounds, chucks, and ground beef, have seen the biggest jump in value. #168 choice top round prices are in steak territory at $5.68/lb, up 142% over the past 2 months, and 168% above a year ago.