Much of cattle country is in the midst of -- or recently experienced -- a severe winter event including extremely cold temperatures and, in some regions, heavy snow or ice. Those conditions create numerous management challenges for cattle producers and will impact cattle markets in the coming weeks and perhaps months.
Prolonged sub-freezing temperatures require much additional effort by cattle producers to ensure water availability and provide additional feed required to maintain cattle. For cow-calf operations in calving season the challenges are greater. Newborn calves are especially vulnerable to cold weather until they get dried off and successfully nurse. It takes additional effort to save calves and avoid frozen ears, tails and feet.
Calf losses may impact cattle supplies in the coming months. The cold temperatures will reduce feedlot cattle performance, adding additional days to finish cattle and reducing carcass weights and beef production in the coming weeks.
The January Cattle on Feed report showed an on-feed total of 11.45 million head to start the year, a decrease of 3.2 percent year over year and the 14th consecutive month of declining feedlot inventories. Average feedlot inventories for the past year -- 12-month moving average -- are now at the lowest level since September 2018 and decreased 3.8 percent from the cyclical peak in September 2022.
December feedlot placements decreased 5.4 percent from one year ago and were the ninth consecutive month of lower placements. Total placements for the past six months account for 92 percent of the current feedlot inventory and decreased 8.2 percent year over year.
Feedlot marketings in December were greater than this past year, an increase of 1.8 percent year over year. Slightly greater December marketings follows an 11.9 percent decrease in November marketings and was the first increase in monthly marketings in eight months. Total marketings the past six months decreased 6.9 percent year over year.
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