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Drought continues to impact cattle numbers

The latest Cattle on Feed report from the USDA had placements in July outside the upper end of pre-report expectations.

University of Missouri livestock economist Scott Brown says that could mean two things for the markets. “We could be seeing not-as-strong cattle prices in the near-term,” he says.  “But it probably only makes them stronger as we get further into 2023.”

He tells Brownfield drought is forcing a lot of lightweight calves to be pulled ahead.  “Placement in July for cattle under 600 pounds were up 35,000 head,” he says.  “The 600 to 699 pounds category was up 25,000 head.  “We were only up 32,000 head in total, which means those weight classes were growing while heavier weights declined.”

Cattle on feed on August 1st was 1.4% above the year-ago level and also outside of the upper end of the pre-report range.