Drought Impacting Cattle Supplies

Recent reports from the Department of Agriculture reveal current market trends in the cattle markets. American Farm Bureau Federation Economist Bernt Nelson shares more from the Cattle on Feed report.

“I think we can really call this report bullish, with total cattle on feed coming in right around 11.4 million, down one percent from this time in 2021. Placements are a little bit over two million head, this is four percent below this time last year in 2021.”

Nelson says placements were down the most in drought-stricken states.

“This is likely due to some tighter calf supplies along with higher feed and input costs amplified by the drought conditions. We’ve seen marketings for fed cattle totaling 1.86 million head for September, this is four percent above this time in 2021. Now, when we really see marketing high and placements become lower over a longer drawn out period of time, this really signals that lower cattle supplies are in the future.”

Additionally, USDA’s Livestock Slaughter Report shows higher beef slaughter numbers.

“So, on October 26, we had 129,000 head processed. So, what we’re seeing here is when the packer really starts trying to reach out and get a hold of these numbers ahead of time, this really tells you that they need to get their hands on cattle to meet the current demand situation. When we see the supplies start to tighten up and we see demand kind of remaining consistent, we’re going to see some upward support in prices.”

Related articles

Thursday and Friday, November 24th and 25th, 2022 Programs

***No video interviews for our holiday programs on Thursday and Friday. Markets were open for a shortened session on Friday as well. Below are links to our Thursday and Friday episodes with various interviews...

Biden Wants Rail Unions, Freight Railroads to Settle Contract Dispute Themselves

President Biden wants rail unions and freight railroads to resolve their long-running contract dispute themselves, without saying publicly if he’ll intervene or ask Congress to do so, barring an agreement. Biden Press Secretary Karine Jean-Pierre...

Wednesday, November 23rd, 2022 Video and Audio Program

Overall, trade on Wednesday was fairly quiet headed into the Thanksgiving holiday. We did find some late buying interest in grains on the session and in turn, slipped lower in cattle and hogs on...

Farm State Senators Vent Over High Diesel Prices 

High input prices helped fuel debate over the next farm bill at a recent Senate Ag Committee hearing. High diesel prices mean high food prices, as farmers and truckers struggle to pay an average...

USDA Invites Producers to Respond Online to the 2022 Census of Agriculture

The USDA mailed survey codes to all known U.S. ag producers with the invitation to respond online to the 2022 Census of Agriculture at agcounts.usda.gov. The ag census is the nation’s only comprehensive and impartial...

Latest articles

%d bloggers like this: