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Cattle on Feed Climb Above a Year Ago

published: December 3rd 2019
by: David P Anderson
source: The Ohio State University Extension

NASS released its November Cattle on Feed report on Friday November 22. The report indicated more cattle on feed than a year ago for the first time since August, 2019. On feed inventories totaled 11.8 million head, 139,000 head more than November, 2018. In percentage terms on feed was up 1.2 percent.

Inventories grew on the strength of the largest October placements, 2.477 million head, since October, 2010 when 2.5 million head were placed. October is typically the largest placement month of the year due to large numbers of calves being weaned and sold and cattle coming off long summer grazing programs. Slightly fewer cattle were placed weighing less than 700 pounds than a year ago, 1.14 million in 2019 compared to 1.165 million last year. But, all the decline came from the lightest weights, those under 600 pounds which numbered 40,000 fewer than last year. The under 600 pound category was the only category in which fewer cattle were placed than a year ago. Placements of cattle weighing more than 700 pounds wereup 254,000 more than a year ago. September is normally the largest placement month in the Fall of heavier cattle. (Typically, March and May are also large heavy weight placement months due to wheat pasture and other winter grazing programs.) It would appear that anecdotal stories of cattle doing very well this summer were accurate, given placement weights. It’s interesting to note that 25,000 more head were placed weighing over 1,000 pounds than a year ago. For the year, placements are about half a percent ahead of last year.

On balance, the report did not differ a lot from pre-report estimates. Marketings were about as expected in the pre-report estimates, down 0.6 percent from a year ago and in line with daily slaughter for the month. Placements were expected to be large and on feed to grow. There were profitable opportunities to place with rising futures prices for the Spring.

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