Cattle On Feed Report Shows Industry In Good Shape With Opportunities Arising

 By Dr. Derrell Peel Extension Livestock Market Economist

During the latest Beef Buzz, Farm Director Ron Hays spoke to Extension Livestock Market Economist Dr. Derrell Peel about where we are in the cattle business in avoiding some of the same problems the industry experienced last year with dramatic carcass weight increases that ultimately led to drop-offs in cattle prices. According to Dr. Peel, he says we are doing just fine based on what the numbers are suggesting in the latest USDA Cattle on Feed report.

“In general you would say that this suggests we are still being pretty current,” Peel said. “The numbers we have thus far suggest that and I think the Cattle on Feed report would suggest that at this point and time we are still staying very current and we’re in pretty good shape.”

Although Peel acknowledges that the industry will be dealing with an increase in cattle numbers this year, citing that ranchers added a million head to the US herd last year - meaning there will be an even bigger 2016 calf crop - he actually is more comfortable with the feedlot situation. He says he is confident because of the fact that feedlots are staying consistently current describing the segment as “leaner and meaner” compared to the last two or three years.