In accordance with the newest USDA Cattle on Feed report printed final week, feedlot inventories have been under year-ago ranges for the fifth consecutive month. There was an estimated 11.70 million head of cattle on feed as of February 1, 4% decrease than February 1, 2022. For perspective, February 2022 feedlot inventories have been traditionally giant, partly explaining the 4% decline. That’s, evaluating inventories this yr to a traditionally giant quantity final yr.
On-feed inventories have been 4% decrease in Kansas and 6% decrease in Texas. February 1 feedlot inventories in Nebraska totaled 2.57 million head and have been 3% decrease than final yr’s February whole. Even bigger declines have been noticed in Oklahoma (11% decrease yr over yr) and Colorado (10% decrease yr over yr). Among the many main cattle-feeding areas, Iowa was one in every of only a few states that reported a rise in February 1 inventories, 620 thousand head or 2% greater.
Feedlot placements have been under year-ago ranges since September 2022. January feedlot placements declined 3.4% yr over yr to 1.93 million head. Apart from cattle weighing 700-799 Lbs, placements throughout all weight classes (800 Lbs) have been all down by greater than 3%. Decrease placements may have necessary implications for beef manufacturing in 2023.
Taking a look at forecasts from the February World Agricultural Provide and Demand Estimates (WASDE), USDA expects beef manufacturing to say no 6% in 2023. The February beef manufacturing forecast displays an upward revision of fifty million kilos in comparison with USDA’s January forecast, which affords necessary insights. Increased beef cow and fed heifer slaughter elevated beef manufacturing in 2022, reflecting worsening drought situations. If USDA continues to revise the 2023 beef manufacturing forecast upward, it’s going to counsel that drought situations nonetheless want to enhance to average beef cow and heifer slaughter.
