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

advertisements
   
   
   
   
   
   
   
   
   
   

Beef Buzz News


OSU's Peel Digs Deeper Into the Final Cattle on Feed Numbers of 2017

Tue, 26 Dec 2017 14:46:16 CST

OSU's Peel Digs Deeper Into the Final Cattle on Feed Numbers of 2017 According to Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel- the latest Cattle on Feed report pegged the December 1 feedlot inventory at 11.512 million head, 108 percent of last year. This is an additional 864,000 head in feedlots compared to December 2016. This is also the largest monthly on-feed total since March, 2012 and the highest December feedlot inventory since 2011. Among the three largest cattle feeding states, the December 1 feedlot inventory in Texas and Nebraska were both up 9 percent year over year, while Kansas was 104 percent of last year. Number four Colorado was also 109 percent of one year ago while fifth largest Iowa was 117 percent of last year. November feedlot placements were up 13.8 percent year over year, once again sharply higher than expected. Marketings in November were about as expected at 103.1 percent of one year ago.


After the report- Radio Oklahoma Ag Network Farm Director Ron Hays talked with Dr. Peel about the report in detail- you can hear their conversation about the numbers in the latest edition of the Beef Buzz by clicking on the LISTEN BAR below.



The jump in November placements will clearly be viewed as bearish but a couple of points must be remembered. First, feedlots do not create cattle supply with placements; they can only change the timing a bit. Larger feeder supplies (and feedlot placements) in 2017 were expected given herd growth in 2016. The 2017 calf crop was likely up close to three percent in 2017; roughly a million head more calves. This leads to the second point: recent large placements means that feedlots are pulling cattle forward by placing feeders at a faster rate than the growth in feeder supply. The November placements included a 6.9 percent increase in feeders over 700 pounds; close to expectations. The surprise came from a 20.3 percent increase in placements under 700 pounds. Indeed, placements under 600 pounds were up 29.8 percent year over year. Lightweight feeders placed now will not be available for placement later.



Feedlots are enjoying favorable cost of gain and generally have an incentive to load feedlots up to capacity. A regional look at November placements is even more insightful. Texas placements were 23.1 percent higher than one year ago with placements under 600 pounds up 71.4 percent year over year. This reflects late development of wheat pasture in the Southern Plains this fall. Feedlots took advantage of poor stocker conditions and moved calves into feedlots earlier than is typical.   In fact, Texas placements under 600 pounds, represented 56.3 percent of all placements under 600 pounds and 29.3 percent of the total increase in placements. In total, Texas accounted for 35.2 percent of increased November placements while Kansas accounted for 19.5 percent; Nebraska, 13.7 percent and Colorado, 3.9 percent.



The implications of this report may not be as bearish as it seems. These lightweight placements will be marketed later and are not bunched up with earlier placements. Lightweight placements tend to get spread out more over time and winter weather is likely to further spread cattle out over the next few months. Lightweight placements may help moderate beef production as well. Feedlot data shows that lighter placement weights result in lighter finished weight, and thus lighter carcass weights. Itís not a one for one relationship but, on average, feeders placed 200 pounds lighter would be expected to finish about 100 pounds lighter. Winter weather could further impact finished weights on feedlot cattle and especially these lightweight feeders.



   
   


Ron Hays Beef Buzzes with Livestock Market Economist Dr. Derrell Peel
right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 

Beef News

  • Beef Markets Surprise with Unseasonable Fundamental Strength Supported by Cheaper Corn Stocks  Tue, 18 Sep 2018 10:59:44 CDT
  • Turning 40 This Year, the Certified Angus Beef Program Has More Than Just Longevity to Celebrate  Mon, 17 Sep 2018 09:38:54 CDT
  • Witnessing a Revolution - Genomic Research, New Technology Continues to Advance Angus Breed  Fri, 14 Sep 2018 09:42:15 CDT
  • Mystery Lurks as Seasonal Lows in Cull Cow Market Arrive Early- LMICís Jim Robb Offers This Advice  Thu, 13 Sep 2018 10:57:55 CDT
  • US Beef Export Numbers Paint a Picture of a Robust Demand Environment in the Global Marketplace  Wed, 12 Sep 2018 10:46:16 CDT
  • NCBA's Colin Woodall Races Against Clock to Tie-up Legislative Priorities as Fall Deadlines Approach  Tue, 11 Sep 2018 10:51:24 CDT
  • Let's Face It, These Days Advocacy Has Become Just Another Part of Doing Business on the Ranch  Mon, 10 Sep 2018 11:15:55 CDT
  • Animal Disease Still a Serious Threat to Markets, But Much Progress Has Been Made to Limit Impact  Fri, 07 Sep 2018 11:29:01 CDT
  • Strong Beef Demand Helping Offset Rising Supplies of Cattle in Pipeline  Thu, 06 Sep 2018 08:39:37 CDT
  • After the Website Makeover, Millions Flock to Beef It's Whats for Dinner- Nicely Done!  Wed, 05 Sep 2018 12:40:55 CDT
  • Beef, It's Whats for Dinner Revitalization Going Well- Beef Industry to Build on Rollout with Chuck the Beef Bot  Tue, 04 Sep 2018 06:33:02 CDT
  • Derrell Peel Advises Producers to Start Considering Fall Marketing Plans as Seasonal Lows Approach  Fri, 31 Aug 2018 11:26:54 CDT
  • Geneticist Megan Rolf Shares Her Progress on Developing the Next Big EPD for Water Efficiency  Thu, 30 Aug 2018 10:39:44 CDT
  • K-State's Megan Rolf Continues Search for Elusive Genetic Trait to Improve Cattle's Water-Efficiency  Wed, 29 Aug 2018 15:15:44 CDT
  • NCBA Environmental Counsel Scott Yager Says WOTUS Fight Likely Headed for the Supreme Court  Tue, 28 Aug 2018 10:20:02 CDT
  • Latest USDA Cattle on Feed Report Confirms Larger Supplies Ahead, OSU's Dr. Derrell Peel Reacts  Mon, 27 Aug 2018 10:23:58 CDT
  • Turning 40 This Year, the Certified Angus Beef Program Has More Than Just Longevity to Celebrate  Fri, 24 Aug 2018 11:36:17 CDT
  • Witnessing a Revolution - Genomic Research, New Technology Continues to Advance Angus Breed  Thu, 23 Aug 2018 10:30:48 CDT
  • Speculations Form as Market Awaits Release of On Feed Report, Expectations Hinge on Marketings  Wed, 22 Aug 2018 11:15:24 CDT
  • Changing the Rhythm - The Rise of Disruptive Technologies and Their Influence on the Beef Industry  Tue, 21 Aug 2018 10:39:30 CDT
  • Is Your Herd Health Program Up to Snuff? BI's Craig Jones Offers Tips on Prepping for Fall Calving  Mon, 20 Aug 2018 10:22:35 CDT
  • Though Painful, Beef Producers Continue to Back President's Trade War: "Do What You Gotta Do"  Fri, 17 Aug 2018 10:17:05 CDT
  • Europe Claims It's Willing to Negotiate Trade Terms with US, But are They Really Serious About That  Thu, 16 Aug 2018 10:15:20 CDT
  • Livestock Economist Derrell Peel Says Market Signals All Pointing to Stocker Opportunities This Fall  Wed, 15 Aug 2018 11:14:38 CDT
  • Beef's New Digital Presence Already Showing Significant Return on Investment Less Than a Year In  Tue, 14 Aug 2018 11:22:36 CDT
  • Move Over Siri- NCBA's Alisa Harrison Shares Beef Industry's Plans to Introduce the World to 'Chuck'  Mon, 13 Aug 2018 11:26:01 CDT
  • Bill Bullard Explains the Injunction in Place Against Montana Beef Council Which Could be Expanded to Cover Other State Beef Councils  Fri, 10 Aug 2018 10:28:59 CDT
  • California Rancher Michael Williams Defends US Roundtable for Sustainable Beef- Saying Group is About Education to Improve Production Practices Across the Beef Chain  Thu, 09 Aug 2018 21:05:31 CDT
  • NCBA's Colin Woodall Says Fake Meat a Real Threat, Why USDA Should Oversee All Meat Products  Wed, 08 Aug 2018 11:17:44 CDT
  • Issue of Traceability Gains Traction in Cattle Industry, Producers Mull Possibilty of Voluntary Programs  Tue, 07 Aug 2018 10:23:27 CDT
  • Keep Calm and Carry On - Trump's Trade War Rages On, But World Market Remains Full of Optimism  Mon, 06 Aug 2018 10:26:37 CDT
  • Beef Export Market Continues to Grow Despite the Current Intensity in the Global Trade Environment  Fri, 03 Aug 2018 11:28:18 CDT
  • A New Day Dawning on Trade Talks with the Land of the Rising Sun? NCBAs Kent Bacus Thinks So  Thu, 02 Aug 2018 10:40:27 CDT
  • Let's Face It, These Days Advocacy Has Become Just Another Part of Doing Business on the Ranch  Wed, 01 Aug 2018 10:58:04 CDT
  • As Industry Debates the Need of Traceability - the Performance Food Group Proves Program's Value  Tue, 31 Jul 2018 11:35:25 CDT

  •  

    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 Tulsa Farm Show Stillwater Milling KIS FUTURES, INC. Oklahoma Cattlemen's Association

    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.