Beef Buzz News
OSU's Derrell Peel Weighs in on Big Placements in March USDA Cattle on Feed Report
Sun, 27 Mar 2022 16:35:21 CDT
As is often the case, placements were the story of the latest USDA monthly Cattle on Feed Report that came out on Friday afternoon, March 25, 2022. Placements were up nine percent from a year ago- and at the high end of the pre report guesses. The bigger-than-expected jump in placements seems to be driven by poor pasture conditions due to drought in the Plains. Texas (up 40,000 head), Kansas (up 50,000 head), Nebraska (up 55,000 head) and Colorado (up 10,000 head) accounted for nearly the entire 157,000-head increase in placements.
After the report was released, Oklahoma Farm Report's Ron Hays talked with OSU Extension Livestock Market Economist Dr. Derrell Peel about the report and what those numbers may mean to cattle producers near term and further out as well.
Dr. Peel says the size of the placement number was somewhat surprising- "Well yeah, it's been a little surprising that we have been able to hold these feedlot numbers up and we have talked about this before- we know that cattle numbers in general are coming down...but of course you can change that timing for quite a period of time and that's what feedlots have been doing for several months now actually- they have been able to place cattle and pull them ahead if you will, moreso in recent months. The bottom line is they have been able to hold these feedlot inventories. I think they have been aided in this case by some drought conditions and dry wheat pasture conditions so cattle moved earlier than otherwise so they are in the feedlots now- but that means they won't be there later."
Dr. Peel adds that the weight breakdowns show all of the categories are up from a year ago- and the larger inventory in the feedlots means more mouths to feed and with upward pressure on feed prices- and that will likely erode profitability on cattle closeouts- especially as the year unfolds.
According to the official verbiage from the March Cattle on Feed 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 12.2 million head on March 1, 2022. The inventory was 1 percent above March 1, 2021. This is the highest March 1 inventory since the series began in 1996.
"Placements in feedlots during February totaled 1.85 million head, 9 percent above 2021. Net placements were 1.79 million head. During February, placements of cattle and calves weighing less than 600 pounds were 360,000 head, 600-699 pounds were 325,000 head, 700-799 pounds were 505,000 head, 800-899 pounds were 468,000 head, 900-999 pounds were 135,000 head, and 1,000 pounds and greater were 55,000 head.
"Marketings of fed cattle during February totaled 1.83 million head, 5 percent above 2021."
Oklahoma is the eighth largest state in terms of feedlot numbers- and the Southern Plains Cattle on Feed Summary reports "Cattle and calves on feed for slaughter market in Oklahoma feedlots with capacity of 1,000 head or more totaled 300 thousand head on March 1, 2022, down 5 percent from a year ago. Producers placed 35 thousand head in commercial feedlots during February, up 3 percent from a year ago. Oklahoma commercial feeders marketed 44 thousand head during February, up 16 percent from 2021. Other disappearance during February totaled
1 thousand head, unchanged from a year ago."
You can read the Southern Plains summary by clicking on the PDF at the bottom of this report.
Click here for the complete report from USDA on this March 2022 Cattle on Feed Report.
Listen to Ron and Dr. Peel talk about the March Cattle on Feed Report by clicking on the Listen Bar below.
00791_SouthernPlains-cattle-on-feed-03-2022.pdf
Ron Hays Beef Buzzes with Derrell Peel of OSU on the latest Cattle on Feed Numbers
right-click to download mp3
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