The September Cattle on Feed Report showed that cattle on feed supplies remain tight, with placements into feedlots with 1,000 or more head capacity down 5.1 percent from August 2022.
The largest decline in placements was for cattle weighing more than 800 pounds, which totaled 823 thousand head and was 8.0 percent below August 2022. This decline may suggest that there were limited grazing opportunities this summer due to the drought.
Placements of cattle weighing less than 600 pounds, 600-699 pounds, and 700-799 pounds were also down, but by smaller margins. Seasonally, feedlot placements of lightweight calves increase through the fall and peak in October. This is also when total feedlot placements are at their highest. Monitoring placements this fall will be critical for gauging beef production next year.
The most recent WASDE report from September forecasts 2024 beef production at 25.165 billion pounds, which would be a 6.6 percent decline relative to the most recent estimates for 2023 production.
Implications for the Beef Industry:
The tight cattle on feed supplies and decline in heavy feeder placements in August suggest that beef supplies will remain tight in the coming months. This could lead to higher beef prices for consumers.
The decline in placements of cattle weighing less than 600 pounds, 600-699 pounds, and 700-799 pounds is also concerning, as it suggests that beef production could decline in 2024. This could lead to even higher beef prices in the future.
Beef producers should monitor feedlot placements closely in the coming months to gauge beef production next year. They should also consider strategies to reduce their production costs and improve their profitability in the face of rising input costs and higher interest rates.
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Categories: Ohio, Livestock, Beef Cattle