Surprising Beef Demand Sustained During '18 Results in Favorable December Cattle on Feed ReportFri, 21 Dec 2018 09:44:10 CST
The USDA released its Cattle on Feed report for the December 1, 2018 on Thursday 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.
“I think this report was well-anticipated in terms of the pre-report estimates. Placements are slightly higher than the average but well within the range of estimates. The marketings came in just a hair above the top-end of the range - but was a real narrow range,” Peel said. “Overall, I think it will be viewed very favorably in terms of the trade’s reaction to it.”
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 11.7 million head on December 1, 2018. The inventory was 2 percent above December 1, 2017.
Placements in feedlots during November totaled 2.00 million head, 5 percent below 2017. Net placements were 1.92 million head. During November, placements of cattle and calves weighing less than 600 pounds were 550,000 head, 600-699 pounds were 495,000 head, 700-799 pounds were 416,000 head, 800-899 pounds were 315,000 head, 900-999 pounds were 115,000 head, and 1,000 pounds and greater were 105,000 head.
Marketings of fed cattle during November totaled 1.87 million head, 1 percent above 2017. Marketings were the highest for November since the series began in 1996.
According to Peel, the numbers in this report are an extension of what we have seen lately from this series of data collected throughout the year. He says it reflects feedlots’ consistency in staying current with their inventories during 2018. Peel attributes much of that strong marketing indicated in the report, to surprisingly robust demand for beef that has been sustained for much of the year. He expects this will continue on into 2019 as long as these trends are maintained.
Click here to see the USDA’s Cattle on Feed report for December 1, 2018 for yourself.
Listen to Peel's full analysis of the numbers in this report, with Radio Oklahoma Ag Network Farm Director Ron Hays, 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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