Beef Buzz News
Placements Slightly Higher But No Real Surprises in Derrell Peel's Review of USDA's On Feed Report
Mon, 29 Jan 2018 12:00:59 CST
On Friday, the United States Department of Agriculture released its first Cattle on Feed report for the year, based on January 1, 2018 numbers and Placements and Marketings made during this past December. Radio Oklahoma Ag Network Farm Director Ron Hays reached out to Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel for his reaction to this report, which he also detailed in his article for this week's Cow/Calf Corner newsletter.
Hear Peel offer his full analysis of the report to Hays and the implications it will have on cattle markets
"The January 1, 2018 inventory of cattle in feedlots was 11.49 million head, 108.3 percent of year earlier levels," Peel reported. "This is an increase of 884,000 head compared to January 1, 2017 and is the largest January on-feed total since 2012. For the twelve months of 2017, feedlot placements totaled 23.5 million head, up 1.91 million head (an 8.8 percent increase) from 2016. Total 2017 marketings increased 1.03 million head year over year, up 4.9 percent.
"December placements were up 0.8 percent year over year, slightly more than expected. This follows large year over year placement increases in September, October and November. December marketings were equal to expectations, down 1.4 percent from the previous year. December had one less business day compared to a year earlier, thus daily average marketings were still larger year over year as it was every month in 2017. In the last five months of 2017, feedlot placements exceeded marketings by 506,000 head. These additional cattle will be marketed in the first 4-6 months of 2018.
"December feedlot placements consisted of an unusual pattern of weights with increased year over year placements of feeders under 600 pounds and over 1000 pounds. Placements of typical weights from 600-900 pounds were down 4.7 percent year over year. Beginning in 2017, monthly cattle on feed reports now include more detail on placements of feeder cattle over 800 pounds; with data now showing 800-899, 900-999 and over 1000 pound placement categories. Over all twelve months of 2017, feedlot placements over 1000 pounds represented 4.3 percent of total placements; 900-999 pounds were 8.9 percent; and 800-899 pounds were 21.8 percent of total placements. The 700-799 pound weight group was the largest category at 24.9 percent. Placements of feeders from 600-699 pounds was 18.5 percent of the total placements while those under 600 pounds were 21.5 percent of the total. Placements under 600 pounds likely includes many dairy calves and seasonally some beef calves. Total placements of feeders under 600 pounds were up 11.4 percent in 2017 over 2016; including a 30 percent year over year jump in under 600 pound placements in November that was attributed to lack of wheat pasture in the Southern Plains.
"The latest cattle on feed report also included the breakdown of steers and heifers on feed. Steers on feed, January 1 were 7.34 million head, up 4.5 percent year over year. Heifers on feed were 4.15 million head, up 15.9 percent over one year ago. The number of steers on feed was the largest since 2008 while the number of heifers on feed was the largest since 2012. The heifer feedlot inventory swelled sharply in the last half of 2017 and indicates slowing heifer retention. However, it should be noted that the ratio of steer to heifer slaughter in 2017 was still well above long-term average levels meaning that growing heifer feedlot inventories relative to steers is really just getting back to more typical levels of heifer feeding after sharp reductions due to drought and herd expansion since 2012."
For a look at this report from USDA, click here.
Listen to Peel offer his full analysis of the report to Hays and the implications it will have on cattle markets in the near future, 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.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Action Alert by NCBA- Call Your House Member and Urge a No Vote on Brat Blumenauer Amendment to 2018 Farm Bill Fri, 18 May 2018 05:54:40 CDT
Are Your Cattle Getting Enough Water? Extension Specialist Justin Wagoner Shares His Summer Tips Thu, 17 May 2018 11:30:32 CDT
While this Year's Beef Business Falls a Bit Short Compared to '17, It's Setting Us Up for a Strong 2019 Wed, 16 May 2018 11:50:00 CDT
Price of Hay Surges as US Livestock Industry Grapples with Tightest Hay Stock Supply Since 2013 Tue, 15 May 2018 11:23:07 CDT
NCBA Calls on USDA to Assert Jurisdiction Over 'Fake Meat' Regulation to Ensure Market Fairness Mon, 14 May 2018 11:20:06 CDT
New Zoetis Implant, Synovex, Puts More Weight on Your Cattle and Less on Your Shoulders Fri, 11 May 2018 14:23:31 CDT
OKC West Livestock Sale Raises $59,000 for Oklahoma Cattlemen's Foundation Wildfire Relief Fund Thu, 10 May 2018 09:57:33 CDT
Persistent Drought Tightening Its Grip on Beef Cattle Producers Across the Southern Great Plains Wed, 09 May 2018 10:29:58 CDT
As Smoke Clears, Derrell Peel Calculates $26.4M in Wildfire Damage to NW OK Cattle Operations Tue, 08 May 2018 10:46:35 CDT
USRSB Chairwoman Says Consumer Worry Gives Industry Chance to Better Connect with Consumers Mon, 07 May 2018 10:16:26 CDT
USRSB Chairwoman Says Consumer Worry Gives Industry Chance to Better Connect with Consumers Mon, 07 May 2018 10:15:21 CDT
US Roundtable for Sustainable Beef Releases First-Ever National Framework for Beef Sustainability Fri, 04 May 2018 10:02:34 CDT
NCBA's Jennifer Houston Says USRSB Consumer Insights Pinpoint Key Issues Industry Must Address Thu, 03 May 2018 10:35:30 CDT
As Selection Tools Become More Sophisticated, Ranchers are Growing More Confident in Decisions Wed, 02 May 2018 10:10:35 CDT
The Brains Behind Renowned RA Brown Ranch, Donnell Brown, Shares His Three Tips for Success Tue, 01 May 2018 14:02:14 CDT
Market Analyst Calls for More Pragmatic Approach to Deal with Volatility Upon Revelations from GAO Mon, 30 Apr 2018 11:10:09 CDT
Dems Expected to Draw Hard Line on Farm Bill Proposal as Markup Advances to the House Floor Fri, 27 Apr 2018 10:26:22 CDT
Commercial Cattlemen Have a Crack at Genetic Selection Tools with New Technology in the Works Thu, 26 Apr 2018 10:17:17 CDT
Commercial Cattlemen Have a Crack at Genetic Selection Tools with New Technology in the Works Thu, 26 Apr 2018 10:16:02 CDT
Trouble Deciphering EPDs? Make It Easy on Yourself - Take Jared Decker's Advice, Use the $ Index Wed, 25 Apr 2018 11:10:59 CDT
Noble Expert Shares Secrets to Building a Successful Beef Cow Herd Tailor Made to Your Operation Tue, 24 Apr 2018 10:17:33 CDT
King Ranch Institute Working to Meet Industry's Need for Effective and Efficient Ranch Managers Fri, 20 Apr 2018 15:47:02 CDT
For the First Time in Months- Placements of Cattle Into Feedlots Are Under a Year Ago Fri, 20 Apr 2018 14:59:45 CDT
Low-Cost Production Typical of High-Profit Ranches - More Ranch Managers Who Get That Needed Thu, 19 Apr 2018 10:24:05 CDT
Cattle On Feed Placements Expected to Fall Below Year-Ago Levels for the First Time in Over a Year Wed, 18 Apr 2018 10:29:28 CDT
Beef Markets Managing to Stay Current, Unphased by Growing Supplies and Global Trade Tension Tue, 17 Apr 2018 10:20:34 CDT
More Producer Education Becoming a Priority Investment for Checkoff as Focus Turns to Millennials Mon, 16 Apr 2018 11:35:11 CDT
Conaway's Farm Bill Draft Includes Startup Funding for FMD Vaccine Bank- the Rest to Come, Maybe Fri, 13 Apr 2018 12:47:09 CDT
Despite All the Hubbub Over Trade These Days - US Beef Exports are Actually Doing Pretty Well Thu, 12 Apr 2018 12:21:01 CDT
NCBA Takes Proactive Steps in Addressing Fake Meat with Outline of Recommended Regulations Wed, 11 Apr 2018 10:11:49 CDT
Fear of the Unknown Drags Prices Down as Growing Supply Situation Compounds Producers' Worry Tue, 10 Apr 2018 10:08:36 CDT
CME's Changes to Futures Contracts Show Promising Progress in Effort to Reduce Market Volatility Mon, 09 Apr 2018 11:33:26 CDT
Commercial Cattlemen Have a Crack at Genetic Selection Tools with New Technology in the Works Fri, 06 Apr 2018 11:14:08 CDT
As US and China Hurdle Toward a Possible Trade War- NCBA Stays Vigilant, Monitoring the Situation Thu, 05 Apr 2018 10:27:38 CDT
Trouble Deciphering EPDs? Make It Easy on Yourself - Take Jared Decker's Advice, Use the $ Index Wed, 04 Apr 2018 11:41:38 CDT