The USDA released its last Cattle on Feed report of 2013 this past Friday and it showed the number of cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on December 1, 2013. The inventory was 5 percent below December 1, 2012. This was the second lowest inventory for December 1 since the series began in 1996.
According to Tom Leffler with Leffler Commodities, "Our report did not hold any huge surprises. the only thing that was a little different than what the trade was expecting was looking for--the placements were a little bit lower."
Leffler talked with RON's Jim Apel after the report was released- and his comments about the COF report can be heard on today's Beef Buzz.
Placements in feedlots during November totaled 1.88 million, 3 percent below 2012. Net placements were 1.81 million head. During November, placements of cattle and calves weighing less than 600 pounds were 585,000, 600-699 pounds were 510,000, 700-799 pounds were 362,000, and 800 pounds and greater were 425,000.
Marketings of fed cattle during November totaled 1.68 million, 5 percent below 2012.
OSU Extension Livestock Market Economist Dr, Derrell Peel saw some regional shifts in the state by state numbers. Dr. Peel writes "The COF report also confirms regional changes in feedlot production. December feedlot inventories were down more, year over year, in the Southern Plains compared to the Midwest. Feedlot inventories in Iowa were 100 percent of last year with Nebraska at 96 percent of one year ago, while Texas and Kansas inventories were 93 and 94 percent of last year. Oklahoma, in particular, has seen a sharp drop in feedlot inventories in 2013. The December 1 Oklahoma feedlot inventory was 77 percent of year ago levels. Oklahoma placements, January through November, were down 9.6 percent while marketings were down only 1.4 percent leading to the reduced current inventory and smaller future marketings. December 1 feedlot inventories in Texas and Oklahoma represented less than 26 percent of the total U.S. feedlot inventory for the first time since the current cattle on feed data series began in 1996.
"Reduced feedlot production in the Southern Plains no doubt reflects the dramatic herd reductions in the region due to drought since 2010 but may also reflect longer term changes in cattle feeding competitiveness compared to the Midwest. It was noted in 2007 that generally higher grain prices combined with increased availability of by-product feeds in the Corn Belt would shift cattle feeding competitiveness somewhat to the Midwest relative to the Southern Plains. It is difficult to separate long term trends from short term market impacts but time will tell."
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
