Beef Buzz News
Latest Cattle on Feed Report Shows Some Regions of the Country are More Current Than Others
Mon, 27 Sep 2021 10:28:18 CDT
On Friday, the USDA released the latest Cattle on Feed report. For more than a year, fed cattle have outnumbered U.S. beef processing facilities' slaughter capacity, creating a bottleneck. To help break down the latest report, Ron Hays, director of farm and ranch programming for the Radio Oklahoma Ag Network, sat down with Senior Vice President of Food and Agricultural Research, Animal Protein at Rabo AgriFinance Don Close.
According to the report, as of Sept.1 U.S. feedlots had 11.2 million head of cattle on feed, at 99% and just 160,000 less than last year. Placements of cattle in feedlots were at 2.1 million head, 2% above 2020. Marketings of fed cattle during August totaled 1.89 million head, slightly below 2020.
"Initial reaction to the report - I would not go so far as to say it is bearish, but it is certainly a disappointment," Close said. "A lot of, including our light placement estimates, were down 2 - 2.5%."
He said after seeing three months of reduced placement of cattle in feedlots, the latest report shows the U.S. is putting more cattle on feed again. Although the overall report shows some backtracking, if you look at the report from a regional perspective, taking into consideration the relentless drought most of the West has been dealing with, the report shows some progress, he added.
"If you look at the - state breakdown of where these cattle were placed, we saw a very aggressive placement of cattle in the western states," Close said. "We did see enough of an increase in the Corn Belt - it is bearish up there, but not as much as the West. In the Plains states - Texas, Oklahoma and New Mexico - we saw a measurable decline."
He said when you look at the report from that context, the numbers are not what analysts expected, but not as bleak as folks may think.
To give a comparison to last year's feedlot cattle numbers, Close said in the context of the last five years, we are still looking at "extremely big numbers."
"That 2% increase in placement is still up 7% over the five-year average," Close said.
Click on the LISTEN BAR below to hear more from Ron Hays and Don Close as they talk about the latest USDA Cattle on Feed report, including prices and what those indicate for the future.
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 Ron's conversation with Don here.
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