From staff reports STILLWATER – Analyzing data from the USDA’s February Cattle on Feed Report, Oklahoma State University Extension Livestock Market economist Dr. Derrel Peel believes smaller feedlot inventories are on the horizon. The report states cattle and calves on feedlots for the slaughter market in the U.S. for feedlots with a capacity of 1,000 or more head totaled 11.8 million on Feb. 1, 2024. The inventory was slightly – 40,000 head – above Feb. 1, 2023, inventory.
“Starting last fall, we had three or four months of big p lacements that pulled the numbers back above year-ago levels but that was a short-term thing,” said Peel.
“I think that w as a function of We are starting to see that now.”
The USDA reports placements in feedlots during January totaled 1.79 million head, 7% below 2023. Net placements were 1.71 million head.
Placements of cattle and calves weighing less than 600 pounds were 370,000 head; 600-699 pounds were 395,000 head; 700-799 pounds were 475,000 head; 800-899 pounds were 377,000 head; 900-999 pounds were 105,000 head, and 1,000 pounds and greater were 70,000 head.
An anticipated feedlot supply scarcity implies future market incentives for the expansion of the U.S. beef cow herd. Peel predicts that interest in replenishing beef cow stocks will pick up in 2024, so long as the weather permits.
Despite relatively even inventory numbers with the year prior, Peel believes “we will see these numbers tighten up appreciably. We are liable to pull down these feedlot inventories down a million head in the next few months.”