Source: Rita Jane Gabbett, MEATINGPLACE, 1/30/17


USDA’s monthly Cattle on Feed report on Friday showed U.S. cattle placed on feed in December up 17.6 percent from a year ago, while, on average, analysts were expecting placements to be up about 8.8 percent, according to a pre-report survey by Urner Barry.

Analysts noted in the Daily Livestock Report, published by Steiner Consulting Group, that good pasture conditions and poor forward returns limited feedlot demand for cattle in September and October, but feedlots have more than made up for the lower fall placements in November and December.

They also noted the bulk of the inventory placed in December were lighter-weight cattle, but added, “front end supplies remain quite current and, in the short term, this could continue to support fed cattle prices.”

Last year, fed cattle slaughter dropped in February and March, causing the supply of market-ready cattle to swell by spring, possibly contributing to weak pricing in late summer and early fall.

“What is different, and likely more supportive of fed cattle this year, is that front end supplies are more current, steer weights are declining and packers have a few more forward bookings that they need to fill,” the DLR analysts wrote.

USDA reported cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on Jan. 1, 2017, slightly above Jan. 1, 2016. The inventory included 7.02 million steers and steer calves, down 2 percent from the previous year. Heifers and heifer calves accounted for 3.58 million head, up 5 percent from 2016.

During December, placements of cattle and calves weighing less than 600 pounds were 435,000 head, 600-699 pounds were 450,000 head, 700-799 pounds were 450,000 head, and 800 pounds and greater were 460,000 head.

Marketings of fed cattle during December totaled 1.79 million head, 7 percent above 2015 and in line with analysts’ expectations.

Other disappearance totaled 55,000 head during December, 29 percent below 2015.

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