According to the August USDA Cattle on Feed report- out on Friday August 18, 2023- Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.0 million head on August 1, 2023. The inventory was 2 percent below August 1, 2022.
Placements in feedlots during July totaled 1.62 million head, 8 percent below 2022. Net placements were 1.55 million head. During July, placements of cattle and calves weighing less than 600 pounds were 365,000 head,
600-699 pounds were 250,000 head, 700-799 pounds were 370,000 head, 800-899 pounds were 373,000 head,
900-999 pounds were 185,000 head, and 1,000 pounds and greater were 75,000 head.
Marketings of fed cattle during July totaled 1.73 million head, 5 percent below 2022.
Other disappearance totaled 65,000 head during July, 16 percent above 2022.
Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel told Oklahoma Farm Report’s Ron Hays that the key number is obviously the smaller than expected Placement number- 8% less than a year ago versus the pre report guesses that averaged 5% under a year ago. “It’s been hard to figure out the timing of these placements on a month to month basis” and saying this sharp drop tells us “it does mean that we working on pulling these on feed inventories down – that’s what is going to happen over the next several months.”
Dr. Peel adds that this might suggest heifer slaughter will start to happen- although we don’t have any specifics on that in this monthly report.
Dr. Peel adds that “we have been heading into tighter supplies and that has been obvious for awhile” and this report of tighter placements means feedlot feedlot cattle to market in the first quarter of 2024. This report shows a two percent smaller feedlot inventory nationally as of August first and Peel adds “I do think that we will see that cattle feedlot inventory drop more sharply in the second half of the year- it always takes a little longer than I think but I think we are now at the turning point where we will see that happen.”
Looking to some other comments from Twitter on the Friday report:
Kenny Burdine– University of Kentucky Livestock Market Economist- “While we won’t get another breakout of steers vs heifers until October, the 8% year-over-year decrease in placements in Friday’s Cattle on Feed report bucks the recent trend and might be a sign of early heifer retention. Fall will paint a clearer picture.”
Rich Nelson with Allendale opines “Monthly Cattle on Feed showed a swing back to lower placements. July inflows were -8.3% yr/yr, under the -5.5% trade estimate. It stops the two prior months of higher numbers. July inflows determine a part of January – April fed cattle supply.” He adds that this gets us trending right back down again with the August numbers.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Ag Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR above for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
