Once again, the Daily Livestock Report www.dailylivestockreport.com., from the CME group gives some insight into supply which will affect prices for finished and ultimately feeder cattle.

• Total slaughter. When we adjust for one less slaughter day during March, US cattle slaughter was up 2.1%, compared to last year.

• Steers. For the first quarter the number of steers coming to market was 1% lower, in part because feedlots placed relatively light calves on feed last fall limiting supply availability.

• Heifers. On the other hand, the number of heifers coming to market during Q1 continued to increase, up 4.4%. Heifer retention slowed down last year as cow-calf producers saw a sharp decline in profitability. In addition drought in the Southern Plains and more limited feed availability also may have caused producers to reduce the number of heifers held back for herd rebuilding. Drought conditions remain a key wild card for the cattle market this summer, impacting the flow of female calves and ultimately the supply of beef at the end of this year.

• Cows. Federally Inspected cow slaughter in Q1 was 7.8% higher than a year ago. Beef cow slaughter for the quarter was 5.6% higher while dairy cow slaughter was 10.5% higher than a year ago.