Source: Rita Jane Gabbett, MEATINGPLACE, 12/19/11

USDA reported U.S. feedlots with capacity of 1,000 or more placed 2.04 million head of cattle on feed during November, up 4 percent from a year ago and about 4 percent more than the average of analysts’ estimates, according to pre-report survey by Dow Jones.

A fairly wide range of analysts estimates spanned 97.3 percent to 103.2 percent of a year ago placements.
In its monthly Cattle on Feed report on Friday, USDA put cattle and calves on feed for slaughter at 12.1 million head on Dec. 1, up 4 percent from a year ago and the second highest Dec. 1 inventory since the series began in 1996.

Placements in feedlots of cattle and calves by weight broke out like this:
• weighing less than 600 pounds totaled 755,000
• weighing 600-699 pounds totaled 499,000
• weighing 700-799 pounds totaled 375,000
• weighing 800 pounds and greater totaled 410,000.

Marketings of fed cattle during November totaled 1.77 million, slightly below
2010.

OSU Extension Livestock Marketing Specialist Derrell Peel predicted some industry players would interpret the report as bearish for cattle prices, but he did not see it as significant in terms of altering the availability of cattle.

“It’s not a big enough surprise on placements to change the timing of cattle (to market),” he told Meatingplace.

Peel also noted increased placements came from both the lightest weight animals (600 pounds or less) and the heaviest (over 800 pounds).  He called the lightweight placements indicative of the overall tightness in available cattle. He noted the heavyweight placements came mostly from Nebraska, reflecting excellent grazing conditions in northern states that allowed for later placement in feedlots.

Peel said cattle supply is going to get “significantly tighter” as we move through 2012.

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