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Cattle industry continues to contract

The USDA’s latest Cattle on Feed report indicates further industry contraction.

Placements of cattle into feedlots during April 2023 were down 4% from April 2022 at 1.75 million head, towards the middle of pre-report expectations.

The year-to-year decline can be tied to tighter available numbers.

And while corn prices have softened and pasture conditions have improved in some states, other major feeding areas continue to face drought conditions and tight hay supplies

April marketings fell 10% to 1.7 million head and the total number of cattle on feed on May 1^st was 3% lower at 11.6 million head.

The numbers look mostly neutral for prices, which are heavily dependent on demand.

Comparisons for Brownfield states:

Iowa: On Feed: 630,000 head, up 2% from May 1^st, 2022; Placements: 91,000 head, 3% lower than April of last year; Marketings: 79,000 head, 14% less than a year ago

Kansas: On Feed: 2.44 million head, down 2% from May 1^st, 2022; Placements: 420,000 head, 2% lower than April of last year; Marketings: 400,000 head, 11% less than a year ago

Minnesota: On Feed: 100,000 head, unchanged from May 1^st, 2022; Placements: 17,000 head, 21% higher than April of last year; Marketings: 11,000 head, 15% less than a year ago

Nebraska: On Feed: 2.53 million head, down 5% from May 1^st, 2022; Placements: 420,000 head, 5% lower than April of last year; Marketings: 410,000 head, 7% less than a year ago

South Dakota: On Feed: 220,000 head, unchanged from May 1^st, 2022; Placements: 31,000 head, 15% higher than April of last year; Marketings: 30,000 head, 14% less than a year ago