A Look at Key Numbers in New Cattle Feedlot Report

Friday's USDA report on cattle feedlot activity shares more of the same as previous months' reports -- more shrinkage of the U.S. cattle herd and beef production.

USDA livestock analyst, Shayle Shagam, gives some of the key numbers in the Cattle on Feed report.

Shagam: "The number of cattle on feed on September first in U.S. feedlots with capacity of 1,000 head or greater was just under 9.9 million head which was about 7 percent below a year ago. We placed just under 1.8 million head in August which was down 11 percent from a year ago. And we marketed just under 1.9 million head which was 4 percent below a year ago."

That feedlot placement number of just under 1.8 million was the lowest since these records have been kept since 1996. Monthly marketings for August at 1.9 million was the second lowest number since the report began in 1996.

Shagam addresses the why of lower placements -- which is very similar to what he shared last month.

Shagam: "Basically what we are looking at is the impacts of a declining number of cattle available. Supplies of cattle are tight. Those areas that have grass there is some incentive with those producers to keep their animals on grass."

With tighter supplies, feeder steer prices are rising. They will be up to about $150 to $153 a hundred weight by year's end. Going into next year Shagam says to expect higher prices.

Shagam: "Prices in the mid-$160 on average."