USDA Cattle Inventory Report Expected to Show Slightly Bigger US Beef Cow Herd- Derrell Peel PreviewsTue, 30 Jan 2018 05:51:59 CST
Tomorrow, the United States Department of Agriculture will follow its Cattle on Feed report from last week, with the release of its Cattle Inventory report for January 1, 2018. Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel has used the numbers in the on feed report to finalize his prediction of what might be revealed in this next compilation from USDA. He offered his expected preview of the report to Radio Oklahoma Ag Network Farm Director Ron Hays as they talked about the January Cattle on Feed Report.
To make his determinations, Peel considered the Cattle on Feed reportís breakdown of the number of steers and heifers on feed. Accordingly, steers are up by about 4.5 percent compared to the year earlier. The number of heifers on feed is up to 15.9 percent year-over-year. Peel says these numbers are consistent with his expectations of herd growth - but he says, too, these number heavily suggest that herd expansion is slowing down.
Peel estimates that beef cow numbers for the beginning of the year will come in at around 1.8 percent larger than one year ago and the total cattle inventory up by 2 percent on a year-over-year basis, at approximately 31.8 to 32 million head.
This will likely flood the beef pipeline with increasing supplies to chew through this year. Peel insists that demand will be a key component in how much price pressure the industry will face in 2018. Although, prices have held up reasonably well, especially given the already large supply on hand. But Peel says that is thanks to a surprisingly robust demand in export markets this past year. He says the numbers in this report are probably near all that the industry can handle - unless demand continues to impress further. Chinaís burgeoning market could be a major factor in that prospect.
Listen to Peel share his predictions for the Cattle Inventory report out tomorrow from the USDA, with Ron Hays, on todayís 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.
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