Beef Buzz News
Derrell Peel Says Latest Cattle on Feed Report is Slightly Friendly for the Cattle Industry
Mon, 25 Oct 2021 10:03:16 CDT
The latest Cattle on Feed report has been released by the USDA. This month's report also serves as the third-quarter report. Radio Oklahoma Ag Network Director Ron Hays spoke with Derrell Peel, extension livestock marketing specialist at Oklahoma State University, about the numbers. Peel said, all in all, the latest numbers make up a slightly friendly report for the cattle industry.
"The October Cattle on Feed report showed placements in September at 97% of last year," Peel said. "Marketings in September were also 97% of last year and that gives us an on-feed total for October 1 of 98.6% of one year ago. All in all, I think this is probably going to be perceived as a slightly friendly report."
The industry continues to make progress toward balancing the supply of fed cattle with demand from the packers and processors, according to Peel. The first half of the year saw cattle carried over from 2020 and its challenges, this year has proved challenging in getting out from under that bottleneck, he said. The latest Cattle on Feed report reaffirms that, he added.
"If you take a 12-month average of feedlot inventories, which is a way to compare them month to month a little more cleanly without seasonality, that number actually peaked in June, has been falling and should continue to fall now," Peel said. "In a longer-term cattle cycle sense, we are past the peak numbers - moving into smaller numbers and that should continue from this point on."
The capacity constraint has been an issue and continues to be binding, according to Peel. Many cattle processing plants are still reporting labor shortages due to the COVID-19 pandemic or the effects of the pandemic. Read more about that here.
"We got through the first half of the year from a slaughter standpoint from moving a fairly impressive number of cattle, given the circumstances, with Saturday slaughter," Peel said. "But you cannot continue to do that, so we are probably seeing continued issues there."
Peel said capacity may be getting tighter at the same time cattle numbers are getting tighter, which is why the cattle industry cannot get out from under the capacity constraint.
The latest report also gives insight into what beef cow herds may look like this spring, according to Peel. Drought in cattle country has pushed feed prices up and many producers have no choice but to liquidate their beef cow herds.
"We were already liquidating, but at a relatively modest pace," Peel said. "We have been watching cow slaughter all year and it certainly elevated."
As we hit the peak cow-culling season, Peel said the industry will get a better read on the beef cow herd situation soon.
"I do know that there is a slight increase, year over year, in the number of heifers on feed on October 1," Peel said. "That may be another indication that some heifers that were initially intended for replacements were diverted into the feeder supply chain and are now in the feedlots."
Click on the LISTEN BAR below to hear more from Ron Hays and Derrell Peel as they talk about the latest Cattle on Feed Report, including what producers can do to protect their business amid this challenging time.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
Listen to Ron's conversation with Dr. Peel here.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Beef News
January Cattle on Feed Report Three Percent Under Year Ago- Derrell Peel Says Tighter Supplies Will Be Around for Awhile Mon, 23 Jan 2023 05:15:04 CST
Derrell Peel Talks Latest Cattle on Feed Report- Showing Fewer Cattle on Feed, Lighter Placements and Stronger Marketings. Mon, 26 Dec 2022 08:19:00 CST
Kara Lee with Certified Angus Beef Tells Cattlemen 'Cut the Bull' Fri, 23 Dec 2022 14:30:39 CST
Beef Checkoff Utilizes Digital Marketing Techniques to Interact with Consumers Thu, 22 Dec 2022 16:02:51 CST
Beef Checkoff Research, Education, and Promotion Efforts Point Consumers to Beef Wed, 21 Dec 2022 16:15:46 CST
OSU Economist Derrell Peel Expects US Beef Export Strength to Continue Into the New Year Tue, 20 Dec 2022 08:00:35 CST
NPPC's Michael Formica Feeling Positive About Supreme Courts Upcoming Proposition 12 Decision Mon, 05 Dec 2022 10:08:27 CST
NCBA Fights to Improve Marketing Options for Cattle Producers Fri, 02 Dec 2022 09:58:28 CST
Chinese Consumers Continue to Grow Appetite for U.S. Beef Thu, 01 Dec 2022 09:23:49 CST
Merck Creates Value for Producers and Consumers with Technology and Biopharmaceuticals Wed, 30 Nov 2022 09:55:28 CST
NCBA’s Todd Wilkinson Ready to Fight Back Against Regulatory Overreach in the Cattle Industry Tue, 29 Nov 2022 10:13:33 CST
NCBA and PLC Call ESA Listing Plan of Lesser Prairie Chicken Punitive for Cattle Producers in Southern Plains Wed, 23 Nov 2022 14:51:02 CST
November Cattle on Feed Report Confirms October Pattern of Lower Placements and Tighter Cattle Numbers in Feedlots Tue, 22 Nov 2022 05:07:02 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:36:33 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:27:40 CST
Midterm Elections to Set Stage for What Can Be Expected in 2023 Farm Bill Mon, 07 Nov 2022 12:13:57 CST
USMEF's Dan Halstrom Remains Cautiously Optimistic about Strong Beef Demand Going Forward Thu, 03 Nov 2022 09:35:46 CDT
Economic Factors Create Hesitancy in Beef Plant Expansion Plans Wed, 02 Nov 2022 11:03:34 CDT
NCBA's Mike Simone Says Consumer Interest in Fake Meat is on the Decline Tue, 01 Nov 2022 11:41:02 CDT
Beef Remains Valued Product for Consumers as it Allows Them to Stretch their Dollar Mon, 31 Oct 2022 09:15:56 CDT
Hugh Aljoe Provides Methods to Begin and Maintain Good Land Stewardship Fri, 28 Oct 2022 09:30:13 CDT
Implement Soil Health Practices Now to Increase Forage Production when Rains Come Thu, 27 Oct 2022 15:14:07 CDT
Third Beef. It's What's For Dinner. 300 Promotes the Beef Industry on a National Level Wed, 26 Oct 2022 15:32:23 CDT
Latest Cattle on Feed Report from USDA Implies Fewer Pounds of Beef Available in 2023 Tue, 25 Oct 2022 10:17:53 CDT
OSU's Derrell Peel- Lower Placements and Smaller On Feed Number Highlight October Cattle on Feed Report Sun, 23 Oct 2022 12:45:37 CDT
Beef Checkoff Research Continues to Share Beef Sustainability Story with Consumers Fri, 21 Oct 2022 09:23:36 CDT
Beef Checkoff Research Works to Ensure Consumers Beef is a Product They Can Trust Thu, 20 Oct 2022 13:44:44 CDT
Odds for Significant Wheat Pasture Going Lower Daily in the Southern Plains Wed, 19 Oct 2022 14:35:46 CDT
NCBA Weighs in on California's Proposition 12 Tue, 18 Oct 2022 11:32:24 CDT
2022 Stockyards Steak Out Takes Oklahoma Beef to the Next Level Mon, 17 Oct 2022 11:09:07 CDT
Holding Onto Your Cow Herd a Little Longer is Projected to Pay Off, says Randy Blach Fri, 14 Oct 2022 08:14:05 CDT
Randy Blach Confident in Better Cattle Market Conditions Down the Road Thu, 13 Oct 2022 09:43:02 CDT
No Imports or Exports Would Result in a Smaller U.S. Beef Cattle Industry Wed, 12 Oct 2022 16:11:15 CDT
Derrell Peel Explains Why International Trade of Beef is Valuable Tue, 11 Oct 2022 08:19:29 CDT
Animal Agriculture Hopeful for a Win as U.S. Supreme Court Looks at California's Proposition 12 Mon, 10 Oct 2022 09:26:17 CDT