A large portion of the US cattle inventory is in an area experiencing drought, which is likely affecting the timing of placements of feeder cattle in feedlots, said the USDA’s Liv
A large portion of the US cattle inventory is in an area experiencing drought, which is likely affecting the timing of placements of feeder cattle in feedlots, said the USDA’s Livestock, Dairy, and Poultry Outlook, released this week.
This week’s drought monitor from the National Oceanic and Atmospheric Administration, which was released Thursday, showed that during the week ended Tuesday, heavy to excessive rain had eased or eliminated dryness and drought across much of the eastern, southeastern and southcentral US.
However, drought intensified and expanded from the central Corn Belt southwestward across the Southern Plains into the Southwest, including much of southern California. Other modest changes to the US drought included reductions to drought intensity in Montana after recent snowy, cold weather, while dryness and drought expanded in Oregon mostly because of subpar snowpacks.
Additional snow in central portions of the High Plains contrasted with dry conditions elsewhere. No changes were made to the drought picture in the Dakotas because of limited snowfall, but things got worse from Kansas south.
FEWER CATTLE ON SMALL GRAINS PASTURE
The January Cattle Inventory report indicated fewer cattle on small grains pastures than in 2017. The estimate of 1.5 million head on small grains pastures Jan. 1 was 16.7% below the 1.8 million head reported last year.
That level of small grains pasturing in part likely reflects drought conditions in the Southern Plains, the USDA said. To a degree, it likely bolstered the number of cattle on feed in all US feedlots, which was up by 939,000 head, or 7.2%, to 14.0 million head on Jan. 1 from last year.
Though the percent of total cattle inventory on small grains pastures showed some recovery from the 2011-2012 drought, it has begun to decline in recent years, the USDA said. Further, as a result of some cattle likely moving from pastures to feedlots, the number of cattle available to place in feedlots in 2018 was 2.3%, or 447,000 head, lower than last year.
The USDA estimated the number of calves outside feedlots weighing less than 500 pounds to be 14.427 million head, up 0.28% from 14.386 million in 2017. Steers weighing more than 500 pounds totaled 16.352 million head, down 0.19% from 16.384 million a year earlier. And the number of heifers weighing more than 500 pounds totaled 9.332 million, up 3.58% from 9.010 million in 2017.
As a result of the higher late-2017 placements and relatively slower growth in the 2017 calf crop, the USDA lowered its forecast for 2018 commercial beef production from last month to 27.7 billion pounds.
That move also reflects anticipation of fewer cattle to be placed in feedlots in the first half of this year and marketed in the second half. However, it is largely offset by the first-half marketing of cattle placed in late 2017.
CATTLE, BEEF RECAP
No fed cattle sold Wednesday on the Livestock Exchange Video Auction. Only 126 head sold last Wednesday at $126 per cwt.
The USDA lists scattered sales this week at an average cash price of $128.26 per cwt for steers and $126.19 for heifers, up $2 to $3 from last week, and at $202 on a dressed basis, up $2.
The USDA’s choice cutout Thursday was up $1.23 per cwt at $209.04, while select was up $1.63 at $205.14. The choice/select spread narrowed to $3.90 from $4.30 with 117 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Wednesday, was $147.70 per cwt, up $0.08. This compares with Thursday’s Mar settlement of $149.82, up $1.65.
estock, Dairy, and Poultry Outlook, released this week.
This week’s drought monitor from the National Oceanic and Atmospheric Administration, which was released Thursday, showed that during the week ended Tuesday, heavy to excessive rain had eased or eliminated dryness and drought across much of the eastern, southeastern and southcentral US.
However, drought intensified and expanded from the central Corn Belt southwestward across the Southern Plains into the Southwest, including much of southern California. Other modest changes to the US drought included reductions to drought intensity in Montana after recent snowy, cold weather, while dryness and drought expanded in Oregon mostly because of subpar snowpacks.
Additional snow in central portions of the High Plains contrasted with dry conditions elsewhere. No changes were made to the drought picture in the Dakotas because of limited snowfall, but things got worse from Kansas south.
FEWER CATTLE ON SMALL GRAINS PASTURE
The January Cattle Inventory report indicated fewer cattle on small grains pastures than in 2017. The estimate of 1.5 million head on small grains pastures Jan. 1 was 16.7% below the 1.8 million head reported last year.
That level of small grains pasturing in part likely reflects drought conditions in the Southern Plains, the USDA said. To a degree, it likely bolstered the number of cattle on feed in all US feedlots, which was up by 939,000 head, or 7.2%, to 14.0 million head on Jan. 1 from last year.
Though the percent of total cattle inventory on small grains pastures showed some recovery from the 2011-2012 drought, it has begun to decline in recent years, the USDA said. Further, as a result of some cattle likely moving from pastures to feedlots, the number of cattle available to place in feedlots in 2018 was 2.3%, or 447,000 head, lower than last year.
The USDA estimated the number of calves outside feedlots weighing less than 500 pounds to be 14.427 million head, up 0.28% from 14.386 million in 2017. Steers weighing more than 500 pounds totaled 16.352 million head, down 0.19% from 16.384 million a year earlier. And the number of heifers weighing more than 500 pounds totaled 9.332 million, up 3.58% from 9.010 million in 2017.
As a result of the higher late-2017 placements and relatively slower growth in the 2017 calf crop, the USDA lowered its forecast for 2018 commercial beef production from last month to 27.7 billion pounds.
That move also reflects anticipation of fewer cattle to be placed in feedlots in the first half of this year and marketed in the second half. However, it is largely offset by the first-half marketing of cattle placed in late 2017.
CATTLE, BEEF RECAP
No fed cattle sold Wednesday on the Livestock Exchange Video Auction. Only 126 head sold last Wednesday at $126 per cwt.
The USDA lists scattered sales this week at an average cash price of $128.26 per cwt for steers and $126.19 for heifers, up $2 to $3 from last week, and at $202 on a dressed basis, up $2.
The USDA’s choice cutout Thursday was up $1.23 per cwt at $209.04, while select was up $1.63 at $205.14. The choice/select spread narrowed to $3.90 from $4.30 with 117 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Wednesday, was $147.70 per cwt, up $0.08. This compares with Thursday’s Mar settlement of $149.82, up $1.65.