Derrell Peel Stresses Importance of Staying Current as USDA Reveals 5% Increase in Cattle on FeedFri, 24 Aug 2018 15:27:48 CDT
The USDA released its Cattle on Feed report for the August 1, 2018 on Friday afternoon. Radio Oklahoma Ag Network Farm Director Ron Hays reached out to OSU Extension Livestock Market Economist Dr. Derrell Peel for his reaction to the numbers in this month’s report. You can listen to their complete conversation by clicking or tapping the LISTEN BAR below at the bottom of the page.
“There will probably be a little bit of reaction, because placements were a little bigger than some folks expected. If you look at the weight breakdown you see that all of the increase in these placements were in light weight cattle,” Peel said. “So, that’s where the surprise comes in. This may be telling us about the drought’s impact where we’ve pulled some calves off early in some cases and they find their way to the feedlot sooner rather than later.”
According to the 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 11.1 million head on August 1, 2018. The inventory was 5 percent above August 1, 2017. This is the highest August 1 inventory since the series began in 1996.
Placements in feedlots during July totaled 1.74 million head, 8 percent above 2017. Net placements were 1.68 million head. During July, placements of cattle and calves weighing less than 600 pounds were 410,000 head, 600-699 pounds were 290,000 head, 700-799 pounds were 415,000 head, 800-899 pounds were 367,000 head, 900-999 pounds were 175,000 head, and 1,000 pounds and greater were 85,000 head.
Marketings of fed cattle during July totaled 1.87 million head, 5 percent above 2017.
Peel says it will be critical feedlots pay close attention to their marketings and stay current moving forward to ensure they do not fall behind as they face bigger numbers of cattle month to month. This was a big key to feeders’ success last year as the industry dealt with a steadily growing larger supply. That seems to be the main message extracted in this month’s report, which Peel says is signaling more cattle coming through the beef pipeline for the industry to process in the weeks and months ahead.
Click here to see the USDA’s Cattle on Feed report for August 1, 2018 for yourself.
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