The number of cattle sent in may for feedlots of the USA, grew by 10%, reported the Ministry of agriculture of the United States. These figures say about the expected oversupply of beef and lower prices in the third quarter of 2016.

However, analysts predict a rise in the volume of cattle in feedlots. Together with a sharp decrease in the cattle futures related to the confusion around the referendum in Britain on an exit from the European Union, these data can have a minimal impact on futures.

Be aware that this is already embedded in the price, said an analyst of a brokerage firm Allendale Inc.

USDA's monthly report on the cattle reported that 1,884 million head of cattle were placed in feedlots last month compared to 1,719 million in the same month last year and 2,051 million in may of 2014.

Analysts predicted that the volume in feedlots will rise by 9.2%.

Cattle in feedlots as of 1 June was a total of 10,783 million head, or 101% from last year, in line with analysts ' forecasts in 102%. The number of cattle shipped from feedlots to slaughterhouses amounted to 1,794 million head, or 105% from last year, according to the average forecast of 1,796 million head.

According to analysts, manufacturers of cattle could increase the feeding to take advantage of strong profit margins seen in may.

On the Chicago Mercantile exchange live cattle fell to four-year lows last week, as some traders got ready for a potentially pessimistic data.

USDA quarterly pigs report, released on Friday, showed better-than-expected increase in U.S. herd of pigs. Given the large supply in the warehouses of frozen beef, pork and poultry, consumers should be able to buy meat at competitive prices, according to analysts brokerage firm Linn Group.

Source: Thomson Reuters