Farm Bureau Economist Says March Has Been Wild
US - More cattle are being placed into U.S. feedlots, according to the Agriculture Department’s monthly Cattle-on-Feed report released March 23. Although placements are higher than last year, the report in its entirety could be an indication of good news for America’s cattle producers, according to Jim Sartwelle, AFBF livestock economist.“We believe the trade got a slightly positive bag of news,” said Sartwelle. “Despite cattle- on-feed numbers that remain historically high, this report suggests the cattle-feeding sector is catching up to the reduced supply of feeder cattle available out in the countryside.”
Calves placed in the feedlot during February were up by 4 percent over year-ago numbers. Counter to usual form, they only ran 1.8 percent behind January placements. February placements are customarily more than 10 percent less than January, according to Sartwelle, adding that “this tight gap just confirms how feeder cattle placements were disrupted by awful January weather.” Other disappearances, which include cattle killed due to natural calamities, totaled 75,000 during February, 3 percent above last year.
The number of cattle currently on feed in the nation’s 1,000 head-plus feedyards on March 1 totaled 11.6 million, down 4 percent from a year prior. Cattle-on-feed numbers have not been consecutively lower month-to-month from year-ago levels since September and October of 2003. Fed cattle marketings remained active during February, running 7 percent ahead of February 2006. Western Nebraska, a major cattle feeding region, added $3.60 to the cash price of fed cattle during February, finishing the month slightly below $90 per hundredweight.
“March has been a pretty wild month for the fed-cattle trade,” said Sartwelle. “Consider this: as recently as mid-July 2002, fed cattle were trading on a carcass-weight basis at less than what they have traded for on the live basis in 2007.”
Evidence the nation’s feedyards are staying current with marketings should continue to bolster the current pricing situation. More specifically, the tight supply of fed cattle will support stronger boxed beef prices. In addition, Sartwelle said the strong fed prices will support feeder and calf prices subject to the “vagaries” of the corn market.
To read the NASS cattle on feed report,click here.
TheCattleSite News Desk