Agricultural News
OSU's Dr. Derrell Peel says Drought Impacts May be Slowing Down
Mon, 24 Oct 2011 11:03:30 CDT
There are indications that the worst of the drought forced movements of cattle may be slowing down, at least for now, according to Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist. Beef cow slaughter in federal Region 6, has decreased each of the last three weeks, though the rate is still 19 percent above last year in the most recent week that data is available.
Beef cow slaughter outside of Region 6 has also been higher than last year since late July but may be tapering off as well with a smaller increase in the most recent data. For the year to date, Region 6 slaughter is 24 percent above last year and combined with the rest of the country that has beef cow slaughter down a scant 2 percent, results in a national total year to date beef cow slaughter that is 105 percent of year ago levels.
With the bulk of the seasonal cow culling period coming in November, these totals could grow. However, there is some reason to think that much of the normal culling has already occurred and that seasonal culling will be smaller than usual. In Oklahoma, the auction totals for cows are still above year ago levels as well, but are down significantly from the extremely large volumes of the summer. Feeder cattle auction totals are currently close to year ago levels but may drop lower, if as expected, some of the normal fall run of calves has already occurred in drought forced early sales.
The latest Cattle on Feed report also shows a more normal pattern of placements without much obvious drought impacts. Total placements were down in Texas, though higher in the lightweight category. In fact, the under-600 pound weight group was the only group with an increase in placements indicating limited supplies of heavy feeder cattle. Overall, placements were even with a year ago and enough to hold cattle on feed totals even with last month at 105 percent of year ago levels. However, feedlot inventories should begin to drop for the remainder of the year and into next year.
The biggest increase in feedlot placements occurred in Nebraska which was comprised of increases in both the lightest and heaviest placement categories. Excellent forage conditions likely means that more big yearlings will be marketed out of the Northern Plains this fall but overall feeder supplies will be tight. Oklahoma feeder cattle prices, especially calves, have increased recently despite the lack of wheat pasture grazing this fall. A break in corn futures in early October, spurred feedlot demand for feeder cattle and offset the lack of wheat pasture grazing demand.
Our thanks to Dr. Peel for this latest analysis of the cattle marketplace and drought impacts. This article was sent out in the Cow-Calf Corner Newsletter, which is sent out by Dr. Peel and Dr. Glenn Selk on most Mondays.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
