News
Drought drives cattle placements higher
The USDA says the placements of cattle into U.S. feedlots in July moved higher due to the widespread herd liquidation caused by drought in some major U.S. feeding areas.
The total of 1.765 million head was up 2% on the year and above what analysts were expecting heading into the report. That included a significant number of cattle weighing less than 600 pounds, expecting lower feed costs in the coming months. By weight, placements of cattle weighing less than 600 pounds were 410,000 head, 600 to 699 pound placements were 280,000 head, and placements of cattle weighing 700 to 799 pounds were 400,000 head, while 800 to 899 pound placements were 405,000 head, 900 to 999 pound placements were 195,000 head, and placements of cattle weighing 1,000 pounds and heavier were 75,000 head.
Marketings during July were 4% below last year at 1.825 million head, while the total number of cattle on feed in the U.S. on August 1st was 1% higher at 11.224 million head.
How the cattle industry and the markets will view the report remains in question because of the tight near-term market ready numbers and strong demand by packers.
Comparisons for Brownfield states:
Iowa: On Feed: 570,000 head, down 5% from August 1st, 2021; Placements: 56,000 head, unchanged from July 2021; Marketings: 64,000 head, 21% more than last year
Kansas: On Feed: 2.35 million head, down 2% from August 1st, 2021; Placements: 450,000 head, 2% higher than July 2021; Marketings: 440,000 head, 6% less than last year
Minnesota: On Feed: 85,000 head, down 11% from August 1st, 2021; Placements: 10,000 head, 9% lower than July 2021; Marketings: 14,000 head, 7% less than last year
Nebraska: On Feed: 2.32 million head, up 5% from August 1st, 2021; Placements: 445,000 head, 2% higher than July 2021; Marketings: 485,000 head, 6% less than last year
South Dakota: On Feed: 165,000 head, down 15% from August 1st, 2021; Placements: 26,000 head, 24% higher than July 2021; Marketings: 30,000 head, 20% more than last year
Add Comment