Cattle inventory rises 7% from same period last year.

Krissa Welshans 1, Feedstuffs Editor

April 23, 2018

2 Min Read
Cattle in Nebraska feedlot
CAPACITY CONSTRAINTS: Expanding beef processing capacity today may be fixing yesterday's problem as cattle cycle turns to lower production. DarcyMaulsby/iStock/Thinkstock.

The latest U.S. Department of Agriculture "Cattle on Feed" report showed that cattle and calves on feed for the U.S. slaughter market in feedlots with capacity of 1,000 head or more totaled 11.7 million head on April 1, 2018. This was a 7% rise from the same period last year and the second-highest April 1 inventory since the series began in 1996, USDA said. It was also in line with pre-report estimates.

The inventory included 7.54 million steers and steer calves, up 4% from the previous year. This group accounted for 64% of the total inventory. Heifers and heifer calves accounted for 4.19 million head, up 14% from 2017. Derrell Peel, Oklahoma State University Extension livestock marketing specialist, said the increase in heifers in feedlots is indicative of the slowdown in heifer retention in 2017 that has been continuing in 2018. 

USDA reported that placements in feedlots during March totaled 1.92 million head, 9% below 2017. Analysts had expected a 10% decline from last year.

“While close to expectations, this placement number is significant because it breaks a string of 12 consecutive months of year-over-year placement increases,” Peel noted, adding that the decreased March placements are not an indication of fewer total cattle supplies but, rather, are a confirmation of a change in feedlot timing in recent months.

“Larger, drought-enhanced placements in recent months have built up feedlot inventories and have set the stage for larger-than-normal seasonal peak marketings in May and June,” he noted. “Lower March placements are a reminder that, while the timing of feedlot production has changed somewhat with cattle entering the feedlot earlier than usual recently, fewer cattle are now available for placement, and the overall number of cattle is unchanged.”

Net placements were 1.85 million head. During March, placements of cattle and calves were: 315,000 head for those weighing less than 600 lb., 285,000 head for the 600-699 lb. group, 530,000 head for 700-799 lb., 531,000 head for 800-899 lb., 185,000 head for 900-999 lb. and 75,000 head for those weighing 1,000 lb. and up.

Marketings of fed cattle during March totaled 1.84 million head, 4% below 2017 and in line with analysts’ expectations.

Other disappearance totaled 67,000 head during March, 20% above 2017.

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