The U.S. Division of Agriculture launched the most recent “Cattle on Feed” report on Friday, displaying feedlot stock totaled 11.6 million head on June 1, 2023, down 3% from June 1, 2022. Whereas this was consistent with the pre-report commerce estimate, placements ranges had been a unique story. In line with the report, placements throughout Might totaled 1.96 million head, 5% above 2022. Analysts had anticipated solely a 2% enhance.
USDA livestock analyst Shayle Shagam defined that “some very robust pockets of dryness, particularly within the Southern Plains,” possible contributed to the larger-than-expected rise.
Josh Maples, assistant professor and Extension economist at Mississippi State College, reported that the biggest enhance was in Nebraska the place placements had been 14% larger than final Might. With placements up double digits in all weight classes in Nebraska, he mentioned drought virtually actually was an element.
Shagam famous that the majority weight classes within the general report confirmed will increase. Of explicit be aware, he mentioned a rise in heavier weight placements could counsel that producers who had retained heifers determined they didn’t have the “forage or wherewithal to breed them and carry them ahead.”
Marketings of fed cattle throughout Might totaled 1.95 million head, 2% % above 2022 and consistent with expectations.
Feeder costs luring extra cattle into feedlots
Feedlot returns had been very robust throughout Might and have been constructive for lots of the yr, which Shagam mentioned has introduced very robust demand for calves. Proper now, calves weighing 750-800 lbs. are promoting for about $220/cwt. in Oklahoma Metropolis, which compares to $163/cwt a yr in the past, he mentioned.
“Very robust demand is mirrored in that prime worth, and apparently, given the truth that feedlots have had good returns, they’re keen to pay to maintain these animals coming into the feedlot.”
Wanting forward, Maples mentioned it is going to be attention-grabbing to look at the place the feedlot numbers go throughout the summer season months.
“Cattle on feed numbers usually decline in the summertime and attain their seasonal low level round August earlier than starting to broaden once more for the autumn. Simply how low that low level is that this yr, and the share of heifers, might be informative for discussions on cattle and beef provides,” he mentioned.
