WASHINGTON, DC – The USDA says placements of cattle into feedlots during August 2020 were 2.09 million head, 4% more than the same period in 2019. Most of the placements weigh between 800 and 899 pounds, suggesting there is still a lot of cattle to by marketed by spring of 2021.
Feedlots have been packing cattle into pens during August leading to the big number of cattle on feed at 104% of prior year. Increasing drought conditions, larger supplies of cattle outside feedyards, and improving price forecasts for the future, brought the evitable result of a large reported number of cattle on feed. Futures acted as if some got the numbers early — with futures selling off Friday in the face of higher cash cattle prices.
At a time when the conversation is large numbers of cattle being placed on feed, there are more recent evidence that the large placements numbers of August, reported last Friday, are becoming more moderate in the last two weeks of September. The shorter supplies expected in October might be happening sooner rather than later.
The movement off summer pastures to the feedlot make October traditionally the largest placement month of the year. But this year has been anything but ‘traditional.’ Those numbers will be a major influence over the status of fed supplies next spring.
Currently, several factors are converging in support of cash prices. Boxed beef prices have surprised many who were calling for a lower direction but they have turned higher. Carcass weights fell 10# last week.
September’s report is considered neutral to bearish for early 2021 prices.
U.S.: Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.4 million head on September 1, 2020. The inventory was 4 percent above September 1, 2019. This is the highest September 1 inventory since the series began in 1996.
Placements in feedlots during August totaled 2.06 million head, 9 percent above 2019. Net placements were 2.00 million head. During August, placements of cattle and calves weighing less than 600 pounds were 405,000 head, 600-699 pounds were 335,000 head, 700-799 pounds were 470,000 head, 800-899 pounds were 522,000 head, 900-999 pounds were 230,000 head, and 1,000 pounds and greater were 95,000 head.
Marketings of fed cattle during August totaled 1.89 million head, 3 percent below 2019.
Other disappearance totaled 55,000 head during August, 10 percent below 2019
On September 1, there were 2.54 million head of cattle and calves on feed in the Northern High Plains, 89 percent of the state’s total. The number on feed across the area was up 5 percent from last year and up slightly from the August 1 total. August placements in the Northern High Plains totaled 396 thousand head, up 6 percent from the July total. Marketings were down 6 percent from last month at 384 thousand head.
IOWA: Cattle and calves on feed for the slaughter market in Iowa feedlots with a capacity of 1,000 or more head totaled 610,000 head on September 1, 2020, according to the latest USDA, National Agricultural Statistics Service – Cattle on Feed report. This was down 2% from August, and down 3% from September 1, 2019. Iowa feedlots with a capacity of less than 1,000 head had 485,000 head on feed, down 3% from last month but up 1% from last year.
Cattle and calves on feed for the slaughter market in all Iowa feedlots totaled 1,095,000 head, down 2% from last month and down 1% from last year.
Placements of cattle and calves in Iowa feedlots with a capacity of 1,000 or more head during August totaled 75,000 head, up 19% from July and up 6% from last year. Feedlots with a capacity of less than 1,000 head placed 42,000 head, up 20% from July but down 18% from last year. Placements for all feedlots in Iowa totaled 117,000 head, up 19% from July but down 4% from last year.
Marketings of fed cattle from Iowa feedlots with a capacity of 1,000 or more head during August totaled 83,000 head, up 19% from July and up 20% from last year. Feedlots with a capacity of less than 1,000 head marketed 54,000 head, down 7% from July and down 30% from last year. Marketings for all feedlots in Iowa were 137,000 head, up 7% from July but down 6% from last year. Other disappearance from all feedlots in Iowa totaled 5,000 head.
KANSAS: Kansas feedlots, with capacities of 1,000 or more head, contained 2.47 million cattle on feed on September 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 6% from last year.
Placements during August totaled 540,000 head, up 23% from 2019.
Fed cattle marketings for the month of August totaled 470,000 head, up 9% from last year.
Other disappearance during August totaled 10,000 head, unchanged from last year.
NEBRASKA: Nebraska feedlots, with capacities of 1,000 or more head, contained 2.28 million cattle on feed on September 1, according to the USDA’s National Agricultural Statistics Service. This inventory was up 6% from last year.
Placements during August totaled 505,000 head, up 13% from 2019.
Fed cattle marketings for the month of August totaled 435,000 head, down 5% from last year.
Other disappearance during August totaled 10,000 head, down 5,000 head from last year
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 September 1, 2020. The latest inventory was 2 percent above last month and 12 percent above the September 1, 2019 inventory.
Cattle feeders with 1,000 head or larger capacity marketed an estimated 155,000 head of fed cattle during August 2020. This was 3 percent below last month’s marketings and 24 percent below the marketings one year earlier.
An estimated 180,000 cattle and calves were placed on feed during August 2020, 9 percent above the previous month’s placements and 6 percent above August 2019 placements.
Of the number placed in August, 14 percent weighed less than 600 pounds, 17 percent weighed from 600 to 699 pounds, 19 percent weighed from 700 to 799 pounds, 28 percent weighed from 800-899 pounds, and 22 percent weighed 900 pounds and greater.
Other disappearance for August, at 5,000 head, the same as last month and last year.
SOUTHERN PLAINS: This report contains results from the September 2020 Cattle on Feed Survey collected during the first two weeks of September. 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 2.85 million head on September 1, 2020, up 4 percent from a year ago.
Producers placed 440 thousand head in commercial feedlots during August, up 1 percent from a year ago. Texas commercial feeders marketed 430 thousand head during August, down 4 percent from 2019.
