The big news in the USDA’s Jan. 1 cattle inventory report Wednesday was the decline of 608,000 head of available feeder cattle outside of feedlots.
The USDA’s National Agricultural Statistics Service reported a total feeder cattle supply of 26.105 million head on Jan. 1, down 2.28% from 26.713 million a year earlier.
NASS also reported that all cattle on feed Jan. 1 totaled 14.006 million head, up 939,000, or 7.19%, from 13.067 million a year earlier, and some have suggested this explained the decline in available feeder cattle.
The total number of cattle and calves on Jan. 1 was 94.399 million head, up 694,000, or 0.74%, from 93.705 million a year earlier. Market analysts had expected something close to 94.8 million, so the total number was not expected to cause much reaction on Thursday’s futures market.
All cows and heifers that have calved was reported at 41.123 million head, 564,000, or 1.39%, above the 40.559 million head on Jan. 1, 2017. Beef cows that have calved totaled 31.723 million head, up 510,000, or 1.63%, from 31.213 million a year ago, while milk cows, at 9.400 million head, were up 54,000, or 0.58% from 9.346 million a year earlier.
The total 2017 calf crop was 35.808 million head, up 715,000, or 2.04%, from 35.093 million in 2016.
Calves born during the first half of 2017 were estimated at 26.0 million head, up about 2% from the first half of 2016. Calves born during the second half of 2017 were estimated at 9.81 million head.
HEIFERS UP 0.56%
Heifers weighing 500 pounds or more on Jan. 1 totaled 20.245 million, up 113,000, or 0.56%, from 20.132 million a year earlier.
Of those, 6.131 million, or 30.3%, were earmarked for beef cow replacement, down 237,000, or 3.72%, from 6.368 million a year earlier. Of these, 3.771 million were expected to calve this year, compared with 3.979 million a year ago, a decline of 208,000, or 5.23%.
Dairy heifers over 500 pounds totaled 4.781 million head, up 27,000, or 0.57%, from 4.754 million a year earlier. Of these, 3.038 million were expected to calve this year, down 34,000, or 1.11%, from 3.072 million a year ago.
STEERS, CALVES ABOUT STEADY
The number of steers weighing more than 500 pounds came in at 16.352 million head, down only 32,000, or 0.20%, from a year earlier.
The number of calves weighing less than 500 pounds totaled 14.427 million head, up only 41,000, or 0.28%, from 14.386 million on Jan. 1, 2017.
CATTLE, BEEF RECAP
Cash cattle sold Tuesday at scattered locations in the Plains at $126 per cwt on a live basis, steady to down $1 from the bulk of last week’s transactions, which happened on Friday.
No cattle were sold Wednesday on the Livestock Exchange video auction.
Cash cattle traded early last week at $123 per cwt on a live basis, about steady with the bulk of the previous week’s action, and then at $126 to $127 on Friday, up $3 to $4. On a dressed basis, cattle traded at $200, up about $5.
The USDA’s choice cutout Wednesday was up $0.37 per cwt at $219.06, while select was down $0.05 at $204.32. The choice/select spread widened to $5.74 from $5.32 with 89 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Tuesday, was $147.51 per cwt, down $0.15. This compares with Wednesday’s Mar settlement of $145.05, down $2.12.