Numbers in USDA Cattle on Feed Report Well Anticipated - Derrell Peel Offers A 'Big Picture' AnalysisFri, 25 Aug 2017 15:42:37 CDT
The United Stated Department of Agriculture released the latest report for Cattle on Feed, as of August 1, 2017. Radio Oklahoma Ag Network Farm Director Ron Hays reached out to Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel for his initial response to the numbers in today’s report. You can hear Peel offer his complete analysis of the report to Hays, by clicking or tapping the LISTEN BAR below at the bottom of the story.
“I don’t think this report changes things much,” Peel remarked, summing up his reaction. “In terms of pre-report expectations, this report was pretty well anticipated.”
That fact creates major contrast to the report issued last month in which placement numbers greatly exceeded the expectation of speculators.
According to Peel, this month’s report measured cattle placements at 102.7 percent over last year; marketings at 104.1 percent of last year; and cattle on feed at 104.3 percent - a figure pulled back from the previous month just slightly, says Peel, but still up year-over-year.
“The bigger picture here, is that we’ve been in herd expansion for three years and that’s beginning to show up with a pretty sustained increase in the feeder cattle pipeline,” Peel asserted. “It’s marching on. Those cattle are going to come into the feedlots, work their way through - and all of it ultimately translates into this continued expectation for increased beef production as we go forward.”
Based on the data he has seen, Peel suggests that herd expansion could be starting to moderate this year, although he insists he expects to see some signs of continued expansion during 2017. But, nothing like the 3.5 percent increase as was seen in 2016.
Meanwhile, feedlots still seem to be continuing an aggressive trend at refilling their pens, to capitalize on the incentives in the market right now, taking advantage of the low cost of gain and quick turnovers in stock, which has led to lighter weight cattle being pushed through.
Click here to view the August Cattle on Feed Report, issued Friday afternoon by USDA.
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