Drought Continues to Impact Cattle Placments
“In July the report estimated that all cattle and calves in the US totaled 95 point 9 million head on July want this was down 3% compared to last year's report US beef cattle came in at 29 Point 4 million head now this was a 52 year low for beef cattle supplies that's a significant number we start talking about beef prices.”
In the latest USDA cattle-on-feed report placements remain high again pointing to drought as the culprit.
“This came in around 3% above last year, so this shows that placements have come up a little bit. This tells us that farmers are still putting cattle on feed so while our cow slaughter numbers have come down right around 12% from last year, we are still seeing relatively high number of heifers being placed on feed this tells us that we have not yet bottomed out in the cattle cycle.”
With the elevated placements contraction of the cattle market will continue into 2024 with herd rebuilding not occurring until at least 2025. According to Nelson. As for cattle economics.
“Demand has remained strong on both the global front and the domestic front. The prices have begun to come up and they may continue to come off as long as our demand stays strong for beef
American Farm Bureau Federation Economist Bernt Nelson.”