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Ron Plain: Cattle On Feed Analysis

Sep 25, 2013

Ron Plain
University of Missouri
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USDA-NASS said August placements of cattle into large feed yards (over 1,000 head capacity) were 10.9% lower than in August 2012. The 1.788 million head placed was by far the fewest for any August since USDA started this data series in 1996. Placements were 10.3% below the old record low for August. The average of pre-release trade forecasts was for August placements to be down 8.4%.

USDA said marketings of fed cattle from large feed yards during August totaled 1.883 million head, down 3.7% compared to August 2012 and the least for any August since 2009. The trade predicted August marketings would be down 4.5%. August steer and heifer slaughter was down 5.4% compared to a year ago. There was one fewer marketing day in August compared to a year earlier.

The number of cattle on feed in large feedlots at the start of September was down 7.2% compared to September 2012. The pre-release trade forecast was for the on-feed number to be down 6.5%. This is the thirteenth consecutive month that the number of cattle on feed has been below the year-ago level. The September on-feed number is the lowest for any September since 2003.

The number of cattle placed on feed weighing less than 600 pounds was down 16.0% from the previous July. Placements of feeders weighing 600 to 700 pounds were down 12.2%; placements weighing 700 to 800 pounds were down 9.5%, and placements weighing more than 800 pounds were down 7.5% compared to a year earlier. The calculated average weight of cattle placed on feed during August was up 0.6% from August 2012 and was greater than a year-ago for the 15th consecutive month.

The average retail price for choice beef during August was a record $5.394 per pound. That was up 44.9 cents from August 2012 and up 3.7 cents from the old record set in July of this year. The average retail price of all fresh beef was $4.968/lb, which is also a record for the second consecutive month.
Cattle on Feed, 1000+ Capacity Feedlots, U.S. 

 

2011

2012

2013

Percent of
Year Ago

1,000 head

On Feed August 1

10,579

10,656

10,026

94.1%

Placed during August

2,246

2,007

1,788

89.1%

Marketed during August

2,053

1,955

1,883

96.3%Other Disappearance

Other Disappearance

72

61

55

90.2%

On Feed September 1

10,700

10,647

9,876

92.8%