Friday afternoon’s cattle on feed report confirmed reality in the feedlots and countryside. Cattle herds are growing and the number of cattle going into feedlots is proportionately increasing. There is also the good news: everybody in the business is making money.
The US Department of Agriculture released their latest Cattle on Feed Report on Friday afternoon – showing cattle and calves on feed for slaughter in the United States, for feedlots with capacity of 1,000 or more head, totaled 11.1 million head on June 1, 2017. The inventory was 3 percent above June 1, 2016.
Placements in feedlots during May totaled 2.12 million head, 12 percent above 2016. Net placements were 2.05 million head.
Marketing of fed cattle during May totaled 1.95 million head, 9 percent above 2016.
Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel says the report did not really hold any big surprises. He spoke with Ron Hays from the Radio Oklahoma Network on Friday.
Dr. Peel commented: “This report, in many ways, is very similar to the report of a month ago with a relatively large placement number. A pretty strong marketing number continuing, but despite that, we are starting to see these ‘on feed’ inventories starting to grow.”
Dr. Peel says that this is the result of herd rebuilding, that has resulted in more beef calves being born and becoming available for the feedlot pipeline.
Peel and Hays talked about the report and other current market factors impacting the cattle market including: the overall export market, the potential of China and the lack of impact the ban on fresh beef from Brazil provides.