Tag Archives: Cattle on Feed

No news was good news from the weekend.  No trade issues popping up.  Some shorts in the market & not a lot of willing sellers.  Scattered rain showers will slow some but welcome rain for others.  Some solid weekly exports for the corn but soft for the soybeans.  Ethanol…could we be getting back to a new norm with summer driving & ethanol exports could be the wild card?   Easier to buy then it was to sell on the livestock.  How are numbers from the COF report?  Slaughter numbers moving forward.  Sam talks about the reason for higher hogs today.

 

 

Given the disruptions to the entire supply chain the May cattle on feed report from USDA was highly anticipated. Analysts though were near spot on with their estimates ahead of the report. Leaving little room for surprises.

All cattle and calves on feed in the United States for feedlots with capacity of 1,000 or more head on May 1, 2020 totaled 11.2 million head. This puts US cattle on feed inventory down 5% from a year ago.

With a back up of fed cattle and poor margins many expected there to be fewer cattle going into feed yards. They were correct in their thinking. It appears there will be a lot of cattle on grass this summer.

Placements in feedlots during April totaled 1.43 million head, 22% below 2019. Looking at historical data placements were the second lowest for April since the series began in 1996. Net placements were 1.36 million head. During April, placements of cattle and calves weighing less than 600 pounds were 295,000 head, 600-699 pounds were 180,000 head, 700-799 pounds were 315,000 head, 800-899 pounds were 392,000 head, 900-999 pounds were 180,000 head, and 1,000 pounds and greater were 70,000 head.

With packing plants seeing reduced kills or even temporarily closing throughout the month of April into May marketing of fed cattle were expected to be low. During April 1.46 million head of fed cattle were marketed for slaughter or 76% of the number of fed cattle marketed in 2019. That will make April marketings the lowest since cattle on feed series began in 1996.

Other disappearance totaled 70,000 head during April, 17 percent above 2019.

 

May Cattle on Feed May 2020 % to 2019 Est.
On Feed 11.2 mln hd 95.00% 95.00%
Placed 1.43 mln hd 78.00% 77.10%
Marketed 1.46 mln hd 76.00% 74.70%

 

Jerry Stowell, Country Futures, has a full audio break down of the report.

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.3 million head on April 1, 2020. The inventory was 5% below April 1, 2019, USDA NASS reported on Friday.

The inventory included 7.08 million steers and steer calves, down 5% from the previous year. This group accounted for 63% of the total inventory. Heifers and heifer calves accounted for 4.22 million head, down 7% from 2019.

Placements in feedlots during March totaled 1.56 million head, 23% below 2019. Placements were the lowest for March since the series began in 1996. Net placements were 1.50 million head. During March, placements of cattle and calves weighing less than 600 pounds were 310,000 head, 600-699 pounds were 220,000 head, 700-799 pounds were 410,000 head, 800-899 pounds were 402,000 head, 900-999 pounds were 155,000 head, and 1,000 pounds and greater were 60,000 head.

Marketings of fed cattle during March totaled 2.01 million head, 13% above 2019. Marketings were the second highest for March since the series began in 1996.

Other disappearance totaled 61,000 head during March, 12% below 2019.

You can view the full report here: https://downloads.usda.library.cornell.edu/usda-esmis/files/m326m174z/6969zk43t/0p096s835/cofd0420.pdf

USDA Actual Average Estimate Range
On Feed April 1 95% 95.2% 90.7-96.0%
Placed in March 77% 80.7% 54.6-86.1%
Marketed in March 113% 112.2% 110.1-112.7%
Jerry Stowell, Country Futures, points out that not only was the cattle placed into feed lots historic, but the marketing number was one of the highest since the late 1990s.