According to the latest May Cattle on Feed report released by the USDA-NASS, the United States witnessed a decrease in cattle inventory. The data, which marks the fifth data point of the year for cattle on feed numbers, reveals that as of May 1, 2023, the number of cattle and calves on feed in feedlots with a capacity of 1,000 or more head was 3.4 percent lower compared to the previous year. This decline is consistent with the prevailing trend observed throughout the year, indicating a decline in cattle numbers across the board.
The report indicates that the nationwide cattle on feed inventory was 97% of the previous year's figures. Most states experienced a decrease in cattle on feed inventories compared to the same period in 2022. Texas and Oklahoma reported inventories at 96% and 91% of the previous year, respectively, while Kansas witnessed a 2% decrease. Nebraska saw a 5% decline, while Iowa showed a slight 2% increase in cattle on feed inventories. Overall, this year's cattle on feed numbers have averaged 4% below last year's inventories, reflecting a continuing downward trend.
April's Cattle Placements, an essential factor in determining beef production for the upcoming grilling season, were also lower than anticipated. Placements totaled 1.748 million head, marking a 4% decline compared to the previous year. The report highlights that placements of lighter cattle weighing less than 700 pounds were down 5%, while placements of heavier feeder cattle declined by 4%. This decrease can be attributed to strong feeder cattle prices and drought conditions, which likely prompted the early placement of available cattle in April.
As the cattle industry moves forward, the May WASDE report from the USDA suggests that second-quarter and third-quarter beef production may see a decline of 7% and 4% respectively. These projections imply potential implications for the cattle market and overall meat production in the coming months.
Photo Credit: USDA
Categories: Ohio, Government & Policy, Livestock, Dairy Cattle