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Beef Buzz News

Market Economist Derrell Peel Brings Attention to New Movement Being Observed in Feedlot Country

Thu, 08 Jun 2017 10:55:35 CDT

Market Economist Derrell Peel Brings Attention to New Movement Being Observed in Feedlot Country Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel has been looking at recent cattle on feed numbers - not just the latest report, but taking into consideration the last several months and comparing them to some historical averages for the major feedlot states. He brought to the attention of Radio Oklahoma Ag Network Farm Director Ron Hays, some changes he has observed happening, regarding where cattle are being fed across feedlot country.

According to Peel’s calculations, a couple of the top cattle feeding states, both Texas and Nebraska, are experiencing a slower rate of year-over-year placements, while they still have maintained year-over-year increases. At the same time, he says, the third, fourth and fifth largest feeding states, Kansas, Colorado and Iowa respectively, have seen much more rapid growth compared to the other top two states.

“It’s a combination of short and long run factors that are at play here,” Peel said. “Over the last few years, Texas has declined. Even though Texas is still larger on an annual basis, that gap has cleared a little bit and it’s one of the things that we kind of expected a decade ago really in the face of the ethanol juggernaut that took off, that we might see a relative shift of cattle feeding, or at least a competitiveness of cattle feeding. That’s kind of what we’re seeing happen.”

And while Oklahoma is not one of the top five feeding states, our feedlot numbers are trending in line with those in Texas - somewhat in decline. Peel says the facts are there and the numbers tell the story, but why it’s happening, Peel is hesitant to say.

“I think that’s right, and again some of it is short run conditions and some of it is part of these longer run trends,” he said. “I’m not sure that I have a good explanation for that, it’s just something we observe at this point.”

Listen to Peel and Hays discuss the evolution of changes happening in the feedlot industry over the last several months, recorded in recent USDA Cattle on Feed reports, 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.



Listen to Peel and Hays discuss the evolution of changes happening in the feedlot industry currently
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