Beef Buzz News
OSU's Derrell Peel- Lower Placements and Smaller On Feed Number Highlight October Cattle on Feed ReportSun, 23 Oct 2022 12:45:35 CDT
The October USDA Cattle on Feed report issued on Friday was exactly what the doctored ordered for the cattle industry- and was a nice bonus on top of better cattle prices seen this past week. The report shows that Cattle on Feed finally hit lower on feed numbers- lower placements and higher marketings- On Feed down 1%, Placements down 4% and Marketings up 4%. All three numbers were right where the analysts expected them to be.
Senior Farm and Ranch Broadcaster Ron Hays got on the phone with OSU Extension Livestock Market Economist Dr. Derrell Peel on Friday afternoon after the release of the latest USDA Cattle on Feed Report- a quarterly version with it being October, which provides us a breakdown of steers and heifers in the pipeline.
Hays and Dr. Peel discuss this slightly lower on feed number- Peel saying that this is the first time we have had a lower on feed number compared to a year earlier this year- the last time we had a lower on feed number compared to a year ago came in December 2021. "You know, we have been setting new records on a month by month basis here really all year...now we have reached the point where we have turned the corner."
On the four percent fewer placements compared to a year ago, Peel says "I think we have finally reached the end of the rope there- there just aren't more cattle out there." Peel adds that the under 600 pound category are still up by two percent - saying there are still some of these lightest cattle coming into feedlots- but the heavier weights were under a year ago and made the overall cattle number down by one percent compared to last October first.
Peel adds that this is all about the drought- "we have known that the overall feeder supply has been getting tighter- but that the fact that the feedlots have been able to sorta defy gravity this long has been a testament to what the drought has done and has been masking the real situation on cattle numbers- but you can only do that for so long and we have reached the lmits of that."
Peel adds beef cow herd operators have moved calves early this year in an effort to try to preserve forage for their beef cows- hoping to hold onto them with the expectation that the next calf produced will likely be worth significantly more in a market that in whch we will be dealing with tighter supplies. Peel tells Hays "You do have to be realistic. We do want to plan for what will be happening after the drought- but we have to get through the drought and you need to be realistic about your forage and resource limitations and availability in the meantime."
Listen to the first half of our conversation that Dr. Peel and Hays head about the report and where that leaves us in the final days of 2022 and looking ahead into 2023- click on the link below. Part two of our conversation will look at the what this report tells us about steer and heifer numbers as of October first.
According to the USDA on Friday:
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.4 million head on October 1, 2022.
The inventory was 1 percent below October 1, 2021. The inventory included 6.90 million steers and steer calves, down 2 percent from the previous year. This group accounted for 60 percent of the total inventory. Heifers and heifer calves accounted for 4.55 million head, up 1 percent from 2021.
Placements in feedlots during September totaled 2.08 million head, 4 percent below 2021. Net placements were 2.03 million head. During September, placements of cattle and calves weighing less than 600 pounds were 445,000 head, 600-699 pounds were 330,000 head, 700-799 pounds were 440,000 head, 800-899 pounds were 480,000 head, 900-999 pounds were 290,000 head, and 1,000 pounds and greater were 95,000 head.
Marketings of fed cattle during September totaled 1.86 million head, 4 percent above 2021.
Click here for the compete report from USDA.
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