Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

Latest Cattle on Feed Report Shows Industry Doing a Good Job Managing Growing Cattle Supplies

Mon, 24 Apr 2017 11:10:50 CDT

Latest Cattle on Feed Report Shows Industry Doing a Good Job Managing Growing Cattle Supplies

On Friday of last week, the United States Department of Agriculture released its latest cattle on feed report. According to it, placements in the overall cattle inventory seem to be higher than most would have expected. The resulting implications of this, however, seem to be somewhat moderated when compared to the reported marketings. Radio Oklahoma Ag Network Farm Director Ron Hays spoke with Oklahoma State University Livestock Market Economist Dr. Derrell Peel about his reaction to the numbers crunched by USDA. He says on the whole, this report may be viewed, slightly negative.

“The April USDA Cattle on Feed report showed an on-feed inventory fractionally higher than one year ago at 10.9 million head for feedlots over one thousand head capacity,” Peel wrote in his analysis of the report. “Placements were larger than expected at 111 percent of last year and were, in fact the largest March placements in the current data series back to 1996.”

Peel contends that placements often receive the most attention in these monthly reports and may cause some bearish reaction. He says too, that the general idea that placements will grow should not be a surprise, while placements, along with the placement weight breakdown, provide more specific indications of the timing of fed cattle marketings and slaughter in coming months.

“Three years of confirmed herd expansion since 2014, and likely continued expansion in 2017, means that the cattle pipeline is growing, with plentiful feeder cattle supplies headed toward feedlots for months to come. Record March placements are consistent with the fact that the industry is in the first sustained herd expansion since the early 1990s, predating the current data period. However, sometimes it almost seems like increased monthly feedlot placements are viewed as a new source of supply that suddenly materialized and wasn’t already anticipated.”

March marketings were 110 percent of last year. Monthly feedlot marketings often receive little attention, Peel says, being viewed mostly as history by the time the report is released. However, strong marketings since mid-2016 have contributed greatly to the strength of fed cattle markets so far in 2017.

“Smaller carcass weights Aggressive marketings and reduced days on feed have played a part in helping to hold beef production to smaller year over year increases and thus supporting boxed beef and fed cattle markets,” Peel writes. “The cattle industry in general and feedlots in particular have done a good job managing growing cattle supplies for most of the last year. If this continues the industry can do much to minimize the supply pressure coming to bear on cattle markets in the coming months. Given the reality of growing beef production, the bigger key for the foreseeable future is continued strong domestic and export beef demand.”

Listen to Peel and Hays break down the numbers in this month’s cattle on feed report from the USDA, on today’s Beef Buzz.

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 Peel and Hays break down the numbers in this month's cattle on feed report from the USDA
right-click to download mp3


WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Nice Weather Attracting Good Crowd to Tulsa Farm Show  Fri, 26 Feb 2021 15:37:35 CST
  • FSA Disaster Relief Available for Livestock Deaths in Winter Storm  Fri, 26 Feb 2021 15:12:09 CST
  • Friday, February 26, 2021 Market Wrap-Up with Justin Lewis  Fri, 26 Feb 2021 15:02:11 CST
  • OWRB approves over $1.9 million for infrastructure improvements for six Oklahoma systems  Fri, 26 Feb 2021 14:22:32 CST
  • AFR/OFU Pleased with Pilgrim’s Pride Guilty Plea  Fri, 26 Feb 2021 12:20:24 CST
  • 2021 Agricultural Safety Awareness Program Week is Driving Safety Home  Fri, 26 Feb 2021 12:18:53 CST
  • USDA Invests $1.7 Million in Distance Learning and Telemedicine Infrastructure to Improve Education Outcomes in Oklahoma  Fri, 26 Feb 2021 12:14:29 CST
  • Top 5 things to know about Herd Immunity and COVID-19  Fri, 26 Feb 2021 12:09:19 CST

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.

    Our Road to Rural Prosperity sponsors!


    Search OklahomaFarmReport.com

    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.