Estimates Found Lowballed as USDA Reports Highest On Feed Placements in 12 Years, Up 6 PointsFri, 21 Sep 2018 15:06:43 CDT
The USDA released its Cattle on Feed report for September 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.
“As far as the average pre-report estimates, the placement number is a little bigger than expected. However, there were several analysts that submitted estimates that were that big,” Peel said. “So, I wouldn’t say this is a surprise certainly to everyone, but it may be interpreted somewhat as a bearish placement number relative to expectations.”
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 September 1, 2018. The inventory was 6 percent above September 1, 2017. This is the highest September 1 inventory since the series began in 1996.
Placements in feedlots during August totaled 2.07 million head, 7 percent above 2017. Net placements were 2.02 million head. During August, placements of cattle and calves weighing less than 600 pounds were 430,000 head, 600-699 pounds were 335,000 head, 700-799 pounds were 460,000 head, 800-899 pounds were 475,000 head, 900-999 pounds were 240,000 head, and 1,000 pounds and greater were 130,000 head.
Marketings of fed cattle during August totaled 1.98 million head, slightly above 2017.
Peel says this report is a continuation of the trend that has been seen mounting over the past several months- one that is reflective of the fact that there are more cattle out there that are being led into the pipeline. Peel says that has been the case for months now and will continue to be for several more to come. In Peel’s opinion, the report indicates that overall, the industry is doing a good job at managing a larger number of cattle. He says that while feedlot inventories are growing, cattle are aggressively being moved through the system. In no way does he see reason for concern that feedlots aren’t staying current nor are there any signs of a back-up in supplies in any serious way either.
Click here to see the USDA’s Cattle on Feed report for September 1, 2018 for yourself.
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