Tight numbers in COF report suggests more support for cash prices

News StaffJanuary 23, 2023Agriculture News

WASHINGTON, D.C. –  The monthly COF report confirmed the continuing decline in placements and on feed numbers. Placements were down 8% from December 2021 with the usual holiday related slowdown in placements amplified by winter storms in most of the major feeding areas that canceled sales events and limited livestock movement. Tighter numbers caused by cattle being pulled forward earlier in the year also contributed to the decline.

The total number of cattle on feed in the U.S. on January 1st, 2023 was 11.682 million head, a year-to-year decrease of 3%.

The tighter numbers generally look supportive for cash and wholesale business but  will depend on beef demand remaining strong.

U.S. CATTLE ON FEED:
Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head on January 1, 2023.

The inventory was 3 percent below January 1, 2022. The inventory included 7.03 million steers and steer calves, down 4 percent from the previous year. This group accounted for 60 percent of the total inventory. Heifers and heifer calves accounted for 4.65 million head, down 1 percent from 2022.

Placements in feedlots during December totaled 1.80 million head, 8 percent below 2021. Net placements were 1.75 million head. During December, placements of cattle and calves weighing less than 600 pounds were 455,000 head, 600-699 pounds were 435,000 head, 700-799 pounds were 415,000 head, 800-899 pounds were 304,000 head, 900-999 pounds were 105,000 head, and 1,000 pounds and greater were 90,000 head.

Marketings of fed cattle during December totaled 1.74 million head, 6 percent below 2021. Other disappearance totaled 54,000 head during December, unchanged from 2021.

MINNESOTA:
Cattle and calves on feed for the slaughter market in Minnesota feedlots with a capacity of 1,000 or more head totaled 95,000 head on January 1, 2023, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was unchanged from December but down 5 percent from January 1, 2022.

Placements of cattle and calves in Minnesota feedlots with a capacity of 1,000 or more head during December totaled 13,000 head, down 24 percent from November but up 18 percent from last year.

Marketings of fed cattle from Minnesota feedlots with a capacity of 1,000 or more head during December totaled 12,000 head, down 25 percent from November and down 20 percent from last year.

Other disappearance totaled 1,000 head.

COLORADO:
The number of cattle and calves on feed for the slaughter market in Colorado feedlots with a capacity of 1,000 head or larger was estimated at 1.04 million head as of January 1, 2023.

The latest inventory was unchanged from December 1, 2022, but down 8 percent from January 1, 2022. The inventory included 580,000 steers and steer calves, down 9 percent from last year’s number. The number of heifers and heifer calves, at 460,000 head, is down 7 percent from a year ago.

Cattle feeders with 1,000 head or larger capacity marketed an estimated 140,000 head of fed cattle during December 2022, 18 percent below the previous month and down 18 percent from the December 2021 marketings.

An estimated 145,000 cattle and calves were placed on feed during December 2022, unchanged from last month and 12 percent below the December 2021 placements of 165,000 head. Of the number placed in December, 24 percent weighed less than 600 pounds, 24 percent weighed from 600 to 699 pounds, 21 percent weighed from 700 to 799 pounds, 17 percent weighed 800 to 899 pounds, and 14 percent weighed 900 pounds or greater.

Other disappearance for December was estimated at 5,000 head, no change from last month or last year.

NEBRASKA:
Nebraska feedlots, with capacities of 1,000 or more head, contained 2.60 million cattle on feed on January 1, according to the USDA’s National Agricultural Statistics Service. This inventory was unchanged from last year.

Placements during December totaled 470,000 head, down 7% from 2021.

Fed cattle marketings for the month of December totaled 470,000 head, down 1% from last year.

Other disappearance during December totaled 10,000 head, unchanged from last year.

IOWA:
Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 620,000 head on January 1, 2023, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was down 2 percent from December but up 3 percent from January 1, 2022.

Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during December totaled 84,000 head, down 20 percent from November and down 1 percent from December 2021.

Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during December totaled 92,000 head, down 2 percent from November but unchanged from December 2021.

Other disappearance from feedlots with a capacity of 1,000 or more head in Iowa totaled 2,000 head.

KANSAS:
Kansas feedlots, with capacities of 1,000 or more head, contained 2.39 million cattle on feed on January 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 4% from last year.

Placements during December totaled 440,000 head, down 2% from 2021.

Fed cattle marketings for the month of December totaled 370,000 head, down 14% from last year.

Other disappearance during December totaled 10,000 head, unchanged from last year.

OKLAHOMA / TEXAS:
*Note: This report contains results from the January 2023 Cattle on Feed Survey collected during the first two weeks of January. Data provided by Oklahoma and Texas producers are the foundation of the estimates made for the Southern Plains region.

Cattle and calves on feed for slaughter market in Texas feedlots with capacity of 1,000 head or more totaled 2.77 million head on January 1, 2023, down 5 percent from a year ago.

Producers placed 350 thousand head in commercial feedlots during December, down 21 percent from a year ago.

Texas commercial feeders marketed 380 thousand head during December, down 4 percent from 2022.