Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Beef Buzz News

Latest Cattle On Feed Report Shows Strong Beef Demand Offsetting Increased Beef Supply in 2017

Mon, 25 Sep 2017 11:13:20 CDT

Latest Cattle On Feed Report Shows Strong Beef Demand Offsetting Increased Beef Supply in 2017 The United Stated Department of Agriculture, on Friday, released the latest report for Cattle on Feed, as of September 1, 2017. Radio Oklahoma Ag Network Farm Director Ron Hays spoke with Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel for his analysis of the numbers included in this report.

“This report was pretty well anticipated- not a big surprise to me. I don’t know how the trade will react,” Peel remarked, summing up his reaction. “The placements came in a little bit higher than the average guess, but they weren’t really outside the range.”

"The September USDA Cattle on Feed report pegs the September 1 feedlot inventory at 10.504 million head, 103.6 percent of last year. August placements were 102.6 percent of year ago levels. Placements were larger than expected and may well provoke a bearish market response. What may be overlooked are the continued strong marketings pace. August marketings were close to pre-report expectations at 105.9 percent of last year. Marketings outpaced placements in August and pulled down the year over year increase in feedlot inventories, though not as much as expected. For the first eight months of the year, total placements are up 1.16 million head, an 8.4 percent year over year increase. However, total marketings were up 0.847 million head, 6.1 percent more than last year and largely offsetting the increased placements. As a result the September 1 on-feed inventory was up a modest 369 thousand head year over year," Peel wrote in an article for this week's edition of the Cow/Calf Corner newsletter.

"Higher feedlot throughput is reflected in the year to date increase in steer and heifer slaughter, up 5.9 percent year over year. Steer slaughter is up 3.3 percent while heifer slaughter is up 11.7 percent for the year to date. Additionally, beef cow slaughter is up 11.3 percent so far this year and rising dairy cow slaughter is up 3.9 percent for the year to date. Total bull slaughter is also up 13.1 percent year over year.

"Offsetting increased cattle slaughter are lighter carcass weights. While steer and heifer carcass weights are increasing seasonally, they remain below year earlier levels. In the most recent data, steer carcasses were 896 pounds, 7 pounds below one year earlier; heifer carcasses were 816 pounds, down 5 pounds from the same date last year. For the year to date, steers carcasses have averaged 14.1 pounds lower than last year while heifer carcasses are 12.3 pounds lighter.

"Total beef production for the first 36 weeks of the year is up 4.5 percent year over year. Annual beef production is projected at 26.3 billion pounds, up 4.4 percent year over year. Domestic beef consumption is projected at 56.6 pounds per capita, up 2.2 percent year over year. Despite the increase in domestic beef consumption, retail beef prices remain strong. August Choice beef price was $5.94/lb., down from $6.10/lb. in July but nearly one percent higher than August last year. The all-fresh beef retail price was $5.794/lb. in August, fractionally higher than one year ago.

"Beef production is expected to increase again in 2018, currently projected at 27.4 billion pounds. This would be a record level of U.S. beef production, exceeding the previous high of 2002 with 27.0 billion pounds. Increased beef production, combined with other meats, is projected to surpass 101 billion pounds of total meat production in 2018, a new record as well. Clearly the supply challenges will continue for the foreseeable future. However, 2017 has demonstrated very well that strong domestic and international demand for U.S. beef can mitigate much of the price pressure from growing beef production. Continued strong beef demand can limit 2018 cattle and beef price changes to modest declines."

You can listen to Dr. Peel offer his complete analysis of the September 1, 2017 Cattle on Feed report out last week from the USDA, with me, on today's Beef Buzz. To see the actual report for yourself, you can click here to jump to the report on the USDA website.

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 OSU Economist Derrell Peel share his analysis of the latest On Feed Report with Ron Hays
right-click to download mp3


WebReadyTM Powered by WireReady® NSI


Beef News

  • NCBA Asks for Major Funding to Expand Vaccine Bank, Small Price to Pay Given Potential Damage  Tue, 20 Mar 2018 10:33:35 CDT
  • Industry Pulls Together to Define Antimicrobial Stewardship, Ensure Essential Drugs Remain Available  Mon, 19 Mar 2018 11:12:55 CDT
  • BQA Educator of the Year Ron Gill Says Program Keeps Industry Producers Ahead of the Curve  Fri, 16 Mar 2018 09:58:15 CDT
  • Drought puts Ranchers in Tricky Situation Managing Feed this Spring - Derrell Peel Offers His Advice  Thu, 15 Mar 2018 10:46:53 CDT
  • Livestock Haulers Spared Another 90 Days from ELD Mandate, NCBA Looking for a Permanent Fix  Wed, 14 Mar 2018 11:13:04 CDT
  • Champion Angus Shown by Rayli Cunningham, Laverne FFA Named OYE's Supreme Purebred Heifer  Tue, 13 Mar 2018 10:15:29 CDT
  • South Dakota Sen. Mike Rounds in Ranchers' Corner Working Hard to Secure CERCLA Exemption  Mon, 12 Mar 2018 11:42:09 CDT
  • Buying the Right Bull, Using It in the Most Effective Way Can Make Big Difference to a Bottom Line  Fri, 09 Mar 2018 11:24:13 CST
  • A Word with the Cattlemen's Beef Board's New CEO, Scott Stuart, as He Settles into His New Role  Thu, 08 Mar 2018 10:29:17 CST
  • Times are Changing - Producers Must Change with It to Fit into New Hybrid Retail Model Taking Hold  Wed, 07 Mar 2018 11:33:52 CST
  • Phil Seng Gets Real About TPP - Ship Has Sailed, But With Hard Work US Beef Can Still Compete  Tue, 06 Mar 2018 11:32:04 CST
  • Retired USMEF Chief Phil Seng Sees Another Good Year Ahead, But Says We’ll Have to Fight for It  Mon, 05 Mar 2018 11:04:58 CST
  • Treat Your Soil Microbes Well and Your Grasslands Will Deliver Forage to Make Your Ranch Operation Profitable  Sun, 04 Mar 2018 15:05:39 CST
  • Dr, Richard Teague Says "Don't Overgraze and Don't Overstock" and You Can Be a Success in Rangeland Management  Thu, 01 Mar 2018 16:06:33 CST
  • Dr. Mike Apley Weighs In on the Future of Antibiotics for Beef Cattle Production in the US  Thu, 01 Mar 2018 03:46:51 CST
  • Fourteen Months Into the Veterinary Feed Directive- Cattle Producers Are Working Well With Their Vets   Tue, 27 Feb 2018 20:43:30 CST
  • Drought in the Southern Plains Contributed to Larger Than Expected Placements in Latest Cattle on Feed Report  Mon, 26 Feb 2018 10:18:54 CST
  • NCBA's Sara Place Tells Producers to Beat the Drum, Celebrate US Beef's Success in Sustainability  Fri, 23 Feb 2018 11:08:56 CST
  • Cull Market Weaker than Anticipated, Yet Small Uptick Gives Producers Short Window to Sell Higher  Thu, 22 Feb 2018 13:30:24 CST
  • LMIC's Jim Robb Says Next On Feed Report will Tell a Tale of Dry Conditions Across Southern Plains  Wed, 21 Feb 2018 11:12:05 CST
  • Beef Industry Explores New Technology to Better Reach Consumers of Today's YouTube Generation  Tue, 20 Feb 2018 11:31:26 CST
  • Beef It's What's for Dinner Brand Demonstrates Impressive Staying Power with New Market Relaunch  Mon, 19 Feb 2018 12:10:00 CST
  • A Minor Tweak to Beef Checkoff Logo Has a Major Impact on Both Consumer and Producer Appeal  Fri, 16 Feb 2018 10:15:11 CST
  • Science is on Our Side - NCBA Making Sure That's Well-Known Ahead of the Next Dietary Guidelines  Thu, 15 Feb 2018 10:21:15 CST
  • Beef Becoming the Super Food We Always Knew It Was and NCBA's Shalene McNeill is Behind It All  Wed, 14 Feb 2018 10:16:18 CST
  • Merck Animal Health Introduces First and Only FDA Approved Drug for Controlling Pain in Cattle  Tue, 13 Feb 2018 10:03:21 CST
  • Beef Quality Assurance Program a Proactive Way for Industry Producers to Stay Ahead of Curve  Mon, 12 Feb 2018 11:10:47 CST
  • McDonald's Insider Rickette Collins Offers a Retailer's Perspective on the Value of the USRB's Work  Fri, 09 Feb 2018 12:20:43 CST
  • Australia's Recovering Beef Industry Poses a Threat as US Continues to Grow Its Asian Market Share  Thu, 08 Feb 2018 11:57:03 CST
  • USMEF CEO Dan Halstrom Says US Beef Exports on Track for Record Year in 2017, Maybe '18 Too  Wed, 07 Feb 2018 10:59:23 CST
  • Even with Growing Competition, CattleFax CEO Randy Blach Says Consumers Willing to Pay for Beef  Tue, 06 Feb 2018 10:16:43 CST
  • 2017 a Great Year for Producers - Here's CattleFax CEO Randy Blach's Advice for Keeping It Going  Mon, 05 Feb 2018 11:32:05 CST
  • CattleFax Senior Analyst Kevin Good Predicts Large Cattle Supply and Strong Beef Demand in 2018  Fri, 02 Feb 2018 13:26:18 CST
  • NCBA's Colin Woodall Gains More Positive Outlook on NAFTA 2.0 as Negotiations Pick Up Steam  Thu, 01 Feb 2018 11:36:49 CST
  • From Cattle Industry Conventon 2018- Don Close Previews US Beef Cow Herd Number Coming from USDA  Wed, 31 Jan 2018 06:19:04 CST


    Beef Buzz Archives

    Old Archives  |   2010  |   2011  |   2012  |   2013  |   2014  |   2015  |   2016  |   2017  |   Jan 18  |   Feb 18  |   Mar 18  |   Apr 18  |   May 18  |   Jun 18  |   Jul 18  |   Aug 18  |   Sep 18  |   Oct 18  |   Nov 18  |   Dec 18

    Ron salutes our daily email sponsors!

    Livestock Exchange Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit P&K Equipment Stillwater Milling American Farmers & Ranchers KIS FUTURES, INC. Oklahoma Cattlemen's Association Oklahoma City Farm Show

    Search OklahomaFarmReport.com

    Find more about Weather in Oklahoma City, OK

    © 2008-2018 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.