by Ken Root LISTEN: Profit Matters 6-27-16
The U.S. Cattle herd is growing and has been since 2013. Now that feedlots are getting more cattle, the trend toward keeping heifers to be future brood cows seems to be moderating according to Dr. Darrell Peel, Extension Livestock Marketing Specialist at OSU.
Peel looks at Friday’s report on Cattle on Feed and other trends he sees in the marketplace. For consumers, beef prices are almost certain to go down this year. For producers…will they go into the red and start selling cows, thereby shortening the cycle who knows.
Oklahoma State University Extension Livestock Market Economist Derrell Peel sees few if any surprises in the latest USDA Cattle on Feed report, released on Friday afternoon.
But what he sees longer term is far more interesting. Farm Broadcaster Ron Hays from the Rural Oklahoma network spoke with Dr. Peel.
Dr. Peel says “placements and marketings were both about as expected- the on feed total comes in about two percent up year over year, which was exactly what was expected.”
According to USDA- “Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.8 million head on June 1, 2016. The inventory was 2 percent above June 1, 2015.
“Placements in feedlots during May totaled 1.88 million head, 10 percent above 2015. Net placements were 1.81 million head. During May, placements of cattle and calves weighing less than 600 pounds were 305,000 head, 600- 699 pounds were 250,000 head, 700- 799 pounds were 479,000 head, and 800 pounds and greater were 850,000 head. Marketings of fed cattle during May totaled 1.79 million head, 5 percent above 2015.”
After the report was released, Radio Oklahoma Ag Network Farm Director Ron Hays talked with Peel about the report, who says that this report simply shows the industry is on track to build numbers of cattle this year and likely the next couple of years- “On January 1, we had a bigger estimated feed supply and so that says the cattle are coming at us and we’re seeing that happen now with these bigger placements month over month and we’re going to see that for many more months going forward.”