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


While Not a Market Mover, Latest On Feed Report Does Not Bode Well For Feeders' Bottom Lines

Wed, 26 Jun 2019 11:13:14 CDT

While Not a Market Mover, Latest On Feed Report Does Not Bode Well For Feeders' Bottom Lines The latest United States Department of Agriculture Cattle on Feed Report was published at the end of this past week. According to it, placements as of June 1st were actually reported under a year ago but the on feed number came in above what the trade was expecting and above a year ago. Kansas State University Extension Agricultural Economist Dr. Glynn Tonsor says, while the on feed number was up compared to a year ago, in his view there were still no big surprises coming out of this report.


Based on the numbers in this 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 June 1, 2019. The inventory was 2 percent above June 1, 2018. This is the highest June 1 inventory since the series began in 1996. Placements in feedlots during May totaled 2.06 million head, 3 percent below 2018. Net placements were 1.99 million head. Marketings of fed cattle during May totaled 2.07 million head, 1 percent above 2018.


"On balance there is no big surprises," Tonsor said, highlighting his key takeaways from the report. "The fact that placements were slightly down might be supportive but they're within the realm of prereport expectations. So, I honestly don't think this report will be a market mover."


Tonsor points out one interesting trend, which is an obvious effort to place heavier weight cattle. Classes of 600 to 700 lb. cattle was lower compared to a year ago, while 700 - 800 lb. groupings were up. This again should not come as a surprise, Tonsor says, given more expensive feed costs due to the uncertainty of the corn crop will drive people's preference of placing heavier cattle. Couple that with the ample supply of cattle currently in the pipeline - Tonsor says the industry is looking at some negative returns. His projections put close outs at $90 to $200 losses for each month between now and Christmas. That, he adds, is reflective of not only an elevated cost of gain projection, but declining fed cattle expectations as well. To date, Tonsor explains that feeders have not been pulled down enough to offset that pressure.


"So, something's got to give before those distant months start looking better - in the event the corn crop turns out better than current sentiment," he said. "But, I honestly think there's going to be some more pressure on the feeder side to improve these margins."


Listen to Tonsor break down 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.



   




   

Listen to Tonsor break down the numbers in this report with Farm Director Ron Hays on today's show.
right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 

Beef News

  • January Cattle on Feed Report Three Percent Under Year Ago- Derrell Peel Says Tighter Supplies Will Be Around for Awhile  Mon, 23 Jan 2023 05:15:04 CST
  • Derrell Peel Talks Latest Cattle on Feed Report- Showing Fewer Cattle on Feed, Lighter Placements and Stronger Marketings.  Mon, 26 Dec 2022 08:19:00 CST
  • Kara Lee with Certified Angus Beef Tells Cattlemen 'Cut the Bull'  Fri, 23 Dec 2022 14:30:39 CST
  • Beef Checkoff Utilizes Digital Marketing Techniques to Interact with Consumers   Thu, 22 Dec 2022 16:02:51 CST
  • Beef Checkoff Research, Education, and Promotion Efforts Point Consumers to Beef  Wed, 21 Dec 2022 16:15:46 CST
  • OSU Economist Derrell Peel Expects US Beef Export Strength to Continue Into the New Year   Tue, 20 Dec 2022 08:00:35 CST
  • NPPC's Michael Formica Feeling Positive About Supreme Courts Upcoming Proposition 12 Decision  Mon, 05 Dec 2022 10:08:27 CST
  • NCBA Fights to Improve Marketing Options for Cattle Producers  Fri, 02 Dec 2022 09:58:28 CST
  • Chinese Consumers Continue to Grow Appetite for U.S. Beef  Thu, 01 Dec 2022 09:23:49 CST
  • Merck Creates Value for Producers and Consumers with Technology and Biopharmaceuticals   Wed, 30 Nov 2022 09:55:28 CST
  • NCBA’s Todd Wilkinson Ready to Fight Back Against Regulatory Overreach in the Cattle Industry   Tue, 29 Nov 2022 10:13:33 CST
  • NCBA and PLC Call ESA Listing Plan of Lesser Prairie Chicken Punitive for Cattle Producers in Southern Plains  Wed, 23 Nov 2022 14:51:02 CST
  • November Cattle on Feed Report Confirms October Pattern of Lower Placements and Tighter Cattle Numbers in Feedlots  Tue, 22 Nov 2022 05:07:02 CST
  • Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report  Mon, 21 Nov 2022 04:36:33 CST
  • Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report  Mon, 21 Nov 2022 04:27:40 CST
  • Midterm Elections to Set Stage for What Can Be Expected in 2023 Farm Bill  Mon, 07 Nov 2022 12:13:57 CST
  • USMEF's Dan Halstrom Remains Cautiously Optimistic about Strong Beef Demand Going Forward  Thu, 03 Nov 2022 09:35:46 CDT
  • Economic Factors Create Hesitancy in Beef Plant Expansion Plans  Wed, 02 Nov 2022 11:03:34 CDT
  • NCBA's Mike Simone Says Consumer Interest in Fake Meat is on the Decline  Tue, 01 Nov 2022 11:41:02 CDT
  • Beef Remains Valued Product for Consumers as it Allows Them to Stretch their Dollar  Mon, 31 Oct 2022 09:15:56 CDT
  • Hugh Aljoe Provides Methods to Begin and Maintain Good Land Stewardship  Fri, 28 Oct 2022 09:30:13 CDT
  • Implement Soil Health Practices Now to Increase Forage Production when Rains Come  Thu, 27 Oct 2022 15:14:07 CDT
  • Third Beef. It's What's For Dinner. 300 Promotes the Beef Industry on a National Level  Wed, 26 Oct 2022 15:32:23 CDT
  • Latest Cattle on Feed Report from USDA Implies Fewer Pounds of Beef Available in 2023   Tue, 25 Oct 2022 10:17:53 CDT
  • OSU's Derrell Peel- Lower Placements and Smaller On Feed Number Highlight October Cattle on Feed Report  Sun, 23 Oct 2022 12:45:37 CDT
  • Beef Checkoff Research Continues to Share Beef Sustainability Story with Consumers  Fri, 21 Oct 2022 09:23:36 CDT
  • Beef Checkoff Research Works to Ensure Consumers Beef is a Product They Can Trust  Thu, 20 Oct 2022 13:44:44 CDT
  • Odds for Significant Wheat Pasture Going Lower Daily in the Southern Plains  Wed, 19 Oct 2022 14:35:46 CDT
  • NCBA Weighs in on California's Proposition 12   Tue, 18 Oct 2022 11:32:24 CDT
  • 2022 Stockyards Steak Out Takes Oklahoma Beef to the Next Level  Mon, 17 Oct 2022 11:09:07 CDT
  • Holding Onto Your Cow Herd a Little Longer is Projected to Pay Off, says Randy Blach  Fri, 14 Oct 2022 08:14:05 CDT
  • Randy Blach Confident in Better Cattle Market Conditions Down the Road  Thu, 13 Oct 2022 09:43:02 CDT
  • No Imports or Exports Would Result in a Smaller U.S. Beef Cattle Industry  Wed, 12 Oct 2022 16:11:15 CDT
  • Derrell Peel Explains Why International Trade of Beef is Valuable  Tue, 11 Oct 2022 08:19:29 CDT
  • Animal Agriculture Hopeful for a Win as U.S. Supreme Court Looks at California's Proposition 12   Mon, 10 Oct 2022 09:26:17 CDT

  •  

       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Oklahoma City Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.
       
       
       
       
       

    Search OklahomaFarmReport.com

    © 2008-2024 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.