Source: Rita Jane Gabbett, MEATINGPLACE, 11/21/11

USDA’s monthly Cattle on Feed report issued Friday was in line with analysts’ expectations in terms of cattle on feed and placements, while cattle marketed in October came in stronger than expected.

USDA reported cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.9 million head on Nov. 1, 2011, the second highest Nov. 1 inventory since the series began in 1996.

The inventory was up 4 percent from Nov. 1, 2010 and in line with estimates by analysts Dow Jones polled ahead of the report.

Placements in feedlots during October totaled 2.49 million, 1 percent below 2010 and also in line with analysts’ expectations. Net placements were 2.4 million head.

During October, placements of cattle and calves weighing less than 600 pounds were 805,000, while 600-699 pounds were 600,000 and 700-799 pounds were 501,000. Placements of cattle 800 pounds and greater were 585,000.

Marketings of fed cattle during October totaled 1.79 million, 3 percent above 2010 and above the average analyst expectation that marketings would climb by about 1.4 percent.

Feeder cattle will get scarce
The report reflected further evidence that feeder cattle numbers are going to get very tight sometime in the coming months, Oklahoma State University Extension Livestock Marketing Specialist Derrell Peel told Meatingplace.

“We have fewer numbers of cattle and as we go forward that will get worse,” said Peel. “I don’t know if it will be in a few weeks or months or longer, but the tightest numbers of feeder cattle are still ahead of us.”
He said feedlot supplies would really get squeezed once heifers start being held back to rebuild the herd in the aftermath of the devastating drought that hit Texas and other major cattle states this year.  

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