In this file:
· OSU's Derrell Peel Says Latest Cattle on Feed Report Indicates We're Back on Track
· Audio: June Cattle On Feed Report
OSU's Derrell Peel Says Latest Cattle on Feed Report Indicates We're Back on Track
Oklahoma Farm Report
19 Jun 2020
The latest USDA Cattle on Feed report indicates the industry is almost back on track after suffering through months of the coronavirus impact, says Dr. Derrell Peel, OSU Extension livestock market economist. Peel digested and analyzed the report during a late Friday interview with Radio Oklahoma Ag Network Farm Director Ron Hays.
Peel said the June report showed placements in May are about 99 percent of year ago, Peel said, and marketings in May are about 72 percent of year ago numbers.
The total number of cattle on feed was just down fractionally from a year ago.
Peel said this is about what he expected going into the report.
He said it is Important to keep in mind that the month of May had two less business days than a year ago so that could slew the numbers slightly.
With basically flat placements we are back on track, Peel said.
He noted the cattle are still out there as we have just been moving them around.
The two months of low placements ahead of this report will give us a chance to catch up, Peel said.
The marketing numbers are way under a year ago and we have been watching the slaughter capacity slowly return to normal. Marketings were the lowest for May since the reports began in 1996 and that is mainly due to the impact from Covid-19.
The backlog of cattle lead to heavier carcass weights as cattle waited to be processed. Peel said this has also impacted how you should look at the slaughter numbers.
If you use last year’s carcass weights you can add 3 or 4 percent to the slaughter total, Peel said. We’re effectively slaughtering more cattle each day than a year ago because of the added weights.
The OSU economist said we are starting to see a reversal of the market situation we faced earlier in the spring.
In April and May we had shortages of beef in the market but we’re going to go into a situation now where we will see relatively more supplies to put pressure on the market.
Peel said we’ve got a huge backlog of cattle and we will have an imbalance of supply and demand for many more weeks and that will keep pressure on fed cattle prices
We may see boxed beef prices go somewhat lower yet, Peel said.
Profitability for producers? Maybe, Peel said.
There could be some chances for profits, Peel said, but it is no guarantee.
The heavier feeder cattle market is going to continue to struggle...
more, including audio [8:30 min.]
Audio: June Cattle On Feed Report
BY Rural Radio Network
via KTIC (NE) - June 19, 2020
The June cattle on feed report was highly anticipated given the increase in packing capacity since May. There were wide ranges in all categories, but the USDA numbers all fell fairly close to the average analyst estimate.
All cattle and calves on feed for beef production in the United States fed in feedlots with capacity of 1,000 or more head totaled 11.7 million head on June 1, 2020. The inventory was slightly below June 1, 2019. This is the second highest June 1 inventory since the series began in 1996.
Cattle going into feedlots or placements during May totaled 2.04 million head. That is 1% below 2019. Net placements were 1.97 million head. During May, placements of cattle and calves weighing less than 600 pounds were 375,000 head, 600-699 pounds were 305,000 head, 700-799 pounds were 485,000 head, 800-899 pounds were 532,000 head, 900-999 pounds were 235,000 head, and 1,000 pounds and greater were 105,000 head.
The marketing of fed cattle during May totaled 1.50 million head. 28% below 2019. Cattle marketed was the lowest for
May since the series began in 1996.
Other disappearance totaled 66,000 head during May, 8 percent below 2019...
more, including table, audio [1:55 min.]