Cattle on Feed Report

Cattle on Feed Report

USDA released their monthly Cattle on Feed Report on Friday. After the break USDA livestock analyst, Shayle Shagam will share report results, I’m KayDee Gilkey with Open Range after this.?
USDA livestock analyst Shayle Shagam gives us an update on the country’s cattle on feed numbers.

Shagam: “During August producers placed about 2 million head of cattle in feedlots with a capacity of greater than 1,000 head which was down from about 11 percent a year ago. Marketings were 1.96 million head which was about 5 percent below a year ago leaving about 10.6 million head on feed on Sept. 1st, about 1 percent below a year ago.”

The feedlot placement number of 11 percent below last August was the lowest August number in the last seven years and second lowest in the last 16 years.

Shagam: “Industry analysts were not expecting placements to be this low.”

The low placement numbers of new cattle reflects the low number of available cattle. Shagam suggests that perhaps cattle producers are holding off selling their cattle trying to determine how much feed availability they have to winter cattle.

Shagam: “It’s very much a situation of minute-to-minute almost decisions on the part of some of these producers.”

Overall cattle numbers available to feedlots and meat packers are lower.

Shagam: “Supplies are getting tighter and tighter as you are moving forward. Prices are going to be higher.”

Good news for ranchers with cattle to sell, not so good for consumers’ beef prices.

I’m KayDee Gilkey with Open Range on the Northwest Ag Information Network.