Clues About Tighter Cattle Supplies May Come from Friday USDA Cattle Reports
Oklahoma Farm Report
21 Jul 2021
The Cattle Industry is looking to the US Department of Agriculture for signals about market impact when the agency releases a pair of reports this coming Friday afternoon at 2 PM Central time. One is the regular monthly Cattle on Feed Report, which analysts expect to show smaller placements in June versus a year ago (94%), higher marketings (102.2%) and a slightly smaller on July first one feed number of 99% of a year ago. Rich Nelson with Allendale agrees with that placement number- his exact guess is 4.3% below a year ago and tweets "This impacts December to Mar fed cattle offerings. It is likely July and Augusr ahead will also run below prior year. Tightening supply, year over year."
Meanwhile, USDA will also issue the mid year Cattle Inventory Report at 2 PM on Friday- and our guest on our latest Beef Buzz, Katelyn McCullock of the Livestock Market Information Center sees the key part of that report being the beef cow numbers as she looks for how much a reduction we have had in the first half of the year from drought induced liquidation. McCullock says "a lot of the western US is struggling and doing a good bit of liquidation in parts of that area" adding that "if the pasture is not able to sustain those breeding herds- then a lot of times, you are going to force them into slaughter channels."
She says that cost of feed and/or the lack of available feed is a key reason many cattlemen are having to partially or even totally sell off their herds. She calls it a dire situation.
She expects the USDA data to show...
more, including audio (5:11 min.)