Oklahoma's Latest Farm
And Ranch News
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Tuesday, November 21, 2023 | | | |
Strong Feeder Cattle Sales Boost Feedlot Numbers |
Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry as part of the weekly series known as the “Cow Calf Corner,” published electronically by Dr. Peel and Mark Johnson. Today, Dr. Peel talks about the cattle on feed numbers.
Large feedlot placements for the second consecutive month pushed November feedlot inventories up 1.7 percent year over year. October feedlot placements were higher by 3.8 percent year over year, enough to push feedlot totals higher but a smaller increase than was expected ahead of the report release. October placements are not expected to cause a major negative reaction and, in fact, may be considered positive with a smaller than expected increase. This follows an October report that included a 6.1 percent year over year increase in September placements that surprised and shocked the industry. October marketings were down 2.5 percent year over year, close to pre-report expectations.
A variety of factors have contributed to the increase in feedlot placements the past two months. On-going drought has likely encouraged producers in some regions to market calves sooner rather than later this fall. Additionally, strong U.S. feeder cattle prices and drought in Mexico has resulted in sharp increases in imports of feeder cattle in recent months. Weekly data for October indicates a 49 percent year over year increase in feeder cattle imports from Mexico. A substantial portion of increased feeder cattle imports likely moved directly into feedlots.
Finally, the biggest factor may be that producers are simply taking advantage of strong markets to sell feeders now given current market strength. The recent futures market correction has reduced cash feeder prices for heavy feeder cattle and may have contributed to some fear-based sales. Despite recent decreases, prices for six-weight and heavier feeder cattle are still 30 to 40 percent higher compared to one year ago. In Oklahoma auctions, prices for lightweight calves and stockers have not declined and are 50+ percent higher year over year.
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Sponsor Spotlight
Union Mutual of Oklahoma Turns 85 Years Old
Union Mutual was created 85 years ago for one purpose, that was and is to serve and protect rural Oklahomans and their property. That mission has bever wavered.
Union Mutual Insurance of Oklahoma was chartered in 1938 to write property and casualty insurance in the state of Oklahoma. Over the years, Union Mutual has maintained the attitude that started the company, “Protection for Oklahomans by Oklahomans.” In poor economic times, in times when national insurance companies either stopped writing or completely left the state, Union Mutual has been there for Oklahomans. Today, Union Mutual writes insurance in all 77 counties of Oklahoma through almost 300 agency locations. These agents provide fast and reliable quotes for most lines of insurance.
Union Mutual of Oklahoma CEO Monica Collison had this to say on the company turning 85 years old. “I am humbled to lead such and extraordinary company and team with the history and legacy of Union Mutual. Union Mutual has stood with rural Oklahoma for 85 solid years and I look forward to helping it for the next 85 years.”
For the agent nearest you, go to unionmutualic.com or give them a call at 405 286-7703.
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Rural Oklahoma is full of some of the greatest success stories throughout the entire state and is a big reason why Oklahoma is on track to become a top 10 state.
The Road to Rural Prosperity dives into these stories, bringing you stories covering rural life, agriculture, energy, healthcare, tourism, and politics affecting rural America.
The Road to Rural Prosperity is here to tell stories about rural America, for rural America.
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Cattle Industry Leader Bob Drake sits down and talks with Ron Hays about his lifetime of service in the cattle business. Drake has served as the President of the Oklahoma Cattlemen's Association, the last President of the old National Cattlemen's Association and Vice President of the Oklahoma Farm Bureau.
He loves politics and being a change agent for the cattle producer back up at the fork of the creek. Drake had a front row seat as the Beef Checkoff was approved by cattle producers and he believes it's way past time to find a way to get a second dollar at the national level.
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Tim West
President/General Manager
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405-317-6361
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KC Sheperd
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Radio Oklahoma Ag Network
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Radio Oklahoma Ag Network
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