Higher feedlot placements during fall and winter could reduce the percentage of cattle grading Choice or better, according to the January Livestock, Dairy and Poultry Outlook from USDA's Economic Research Service.

Wheat prices are currently high enough that there is not likely to be wheat pasture available for graze-out this spring, the report said, shifting some fed cattle marketings ahead of a normal schedule. Because cattle will have been in feedlots during the winter months, when gains are poorer because animals must utilize feed for body condition maintenance instead of growth, the report predicts fewer cattle will grade Choice or better.

The situation could affect trade by increasing the need for more fed cattle, fed beef or trimmings from Canada. It could also reduce the need for processing beef from Australia, New Zealand and Uruguay, the report said.

To read the full report, click here.

By Ann Bagel Storck on 1/21/2008 for Meatingplace.com