Cheaper Feed Prices Boosting Finished Cattle Weights

One of the realities of the US cattle industry is having some of the smallest numbers the nation has seen in decades. As producers begin to retain heifers and grow their cowherd, that means even tighter cattle supplies in the days to come. Livestock Marketing Information Center Director Jim Robb said while there are fewer numbers, many of the cattle in feedlots are being fed to heavier weights.

"Steer dressed weights have gone up dramatically, we've had strong year over year increases," Robb said. "The normal pattern is for year over year increases but we haven't had those really the last five or six weeks. We have had slaughter number running this past week nearly eight percent below a year ago for all cattle. Steer and heifer slaughter running four to five percent below a year ago. We probably haven't done a very good job marketing cattle but its worked out well to the advantage of feedlots."

While there are very tight supplies of cattle as indicated by the slaughter level reports, Robb said its unusual in this type market environment there are record high steer weights averaging 893 pounds in the prior week. That was up six pounds week over week and 26 pounds above a year ago, but in the current market it doesn't make as much difference. He said it doesn't seem to be a major problem for the industry as packers are still stepping forward and buying these cattle.

Feedlot operators are able to add those extra pounds at a minimal cost with less expensive grain prices, but on the other hand packers are being challenged with heavier carcasses as they try to manage the size of the cuts to go into their boxes. Robb said the markets have been very volatile in recent weeks, so maintaining these levels could be challenging.