OSU Cattle Market Watcher Derrell Peel Says Cattle On Feed Report Shows Strong Marketing Pace of Finished CattleFri, 18 Nov 2016 15:20:31 CST
On Friday afternoon, the US Department of Agriculture released the November Cattle on Feed Report. Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on November 1, 2016. The inventory was 1.3 percent below November 1, 2015.
Placements in feedlots during October totaled 2.17 million head, 5 percent below 2015. Net placements were 2.11 million head. During October, placements of cattle and calves weighing less than 600 pounds were 610,000 head, 600 - 699 pounds were 525,000 head, 700 - 799 pounds were 471,000 head, and 800 pounds and greater were 565,000 head.
Marketings of fed cattle during October totaled 1.71 million head, 5 percent above 2015.
After the report, Radio Oklahoma Ag Network Farm Director Ron Hays talked with Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel- getting his reaction to the second month of lower placements compared to a year ago- in addition to higher marketings compared to a year ago as well. "As far as expectations, this report was very well anticipated- the numbers were very close and there shouldn't be any surprise reaction to it in that sense." He adds it does confirm "a very strong marketing pace and even though there are more cattle out there, we are moving them through the system very nicely at this point."
Hays and Peel go on to talk about what this report tells us about current beef demand, potential prices in the first few months of 2017 and how the feedlot situation is substantially better than what was being experiences at this time one year ago.
They also talk about fall- winter stocker prospects as well as Peel's take on herd expansion. On that last subject, Peel says that perhaps we are close to being done for right now with herd expansion.
You can hear the entire conversation by clicking on the LISTEN BAR below.
To review the complete USDA Cattle on Feed Report released on November 18th, click or tap here.
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