Derrell Peel Breaks Down the July USDA On Feed Report - Calls It an Overall Positive for the MarketMon, 23 Jul 2018 10:17:40 CDT
On Friday of last week, July 20th, the USDA released the monthly Cattle on Feed report. Upon its release, Radio Oklahoma Ag Network Farm Director Ron Hays caught up with Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel, for his analysis of the numbers. According to him, the July Cattle on Feed report fell right in line with average industry pre-report estimates.
June placements were 101.3 percent of one year ago, the largest June placement total since 2006. June feedlot marketings were 100.9 percent of last year, the largest June marketing total since 2011. June 2018 had one less business day compared to 2017. The July 1 on-feed total was 11.282 million head, up 4.3 percent year over year.
“So, we continue to hold that year-over-year advantage, but it’s not going up,” Peel said. “In fact, we’ve pulled it down since the early part of the year, when we had about an 8 percent year-over-year Cattle on Feed inventory in the last couple of months. Now, we’re holding at this 4… little bit over 4 percent year-over-year increase.”
While this report came in very much in line with expectations, Peel says some of the pre-repot estimates of placements were wide-ranging with some market watchers anticipating a significantly larger number. For those people, Peel says this report’s placements may be a bit of a surprise on the downside. But overall, he believes the market should not react in any negative way and may on balance be a little friendly to this report.
“The numbers are still bigger, but they are beginning to moderate a little bit,” he said. “So, we’re staying up with this increase in supply - is the way I read that.”
Listen to Peel and Hays discuss the outcome of the USDA’s latest Cattle on Feed report published at the end of last week, and what impact it will have on the market, 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.
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