Cattle on Feed Report

The latest cattle on feed report again shows strong placement totals. During the month of October 2017, placements were 10.2 percent higher than during October 2016 – some of which can be attributed to one additional slaughter day in October 2017. While higher than average pre-report estimates, this number was within the range of estimates. Still, … Continue reading

Impressive Beef Exports Continue

The latest trade data released last week showed that the impressive export totals continued through the month of September. Total beef and veal exports were 13.95 percent higher in September 2017 than in September 2016. Year-to-date, total exports are up 14.46 percent over the first nine months of 2016. In total pounds, exports are up about 263 million pounds YTD over last year. … Continue reading

The risk of a trade disruption for American Agriculture

Risk remains one of the salient features of commodity agriculture. We usually discuss weather or market price risk, but we also need to be mindful of policy risk. Macro-economic policy in the 1980s and more recently the Renewable Fuel Policy of 2007 are examples of policy decisions that shocked commodity prices. When I teach risk management, … Continue reading

Forage Conditions and Cattle Demand

Forage conditions are an important driver of calf prices this time of year. When forage is abundant, this can support prices as stocker operations want to fill their available pastures. In particular, winter grazing programs in the Southern Plains region (KS, OK, TX) of the U.S. are important because this region is where many of the calves we sell in the Southeast will end up for the winter. … Continue reading

Feeder Prices Outpacing Seasonal Trends

Feeder price performance this Fall has not followed the seasonally expected trend of lower prices from August to October. Cattle prices generally follow seasonal patterns due to when calves are weaned and sold, when grazing pastures are available, seasonal beef demand, etc. Past performance of prices during this period suggests that prices for 500-600 lb. steers would decline about 7.5% on average from August to October. … Continue reading

Feedlot Placements Higher, but Marketings Strong Also

The latest USDA Cattle on Feed report released Friday showed larger supplies of cattle placed into feedlots was expected prior to the report. The report showed a 13.5% increase in the number of cattle placed into feedlots during the month of September 2017 as compared to the September 2016. Average expectations prior to the report were that placements would be up 7.5%. … Continue reading

Beef Exports Remain Strong

Beef exports continue to exceed 2016 levels as they have every month of 2017. The latest report shows August exports were 14.7 percent higher than the same period last year. This brings the January-August increase to 14.5 percent higher in 2017 than in 2016. The total amount of beef exported in August 2017 was the largest amount of any month since July 2013. … Continue reading

Beef in Cold Storage Situation

Somewhat hidden under the discussion about the cattle on feed report last week was the release of the most recent report on beef in cold storage. The Cold Storage report indicated that frozen stocks were at 476.3 million pounds on August 31st. This represented a 10.3 percent increase in stocks as compared to July. On a percentage point basis, … Continue reading

Understanding Feeder Cattle Price Slides: republished from Dr. Derrell Peel

This week’s article comes from a recent publication by Dr. Derrell Peel at Oklahoma State University. Mississippi prices follow similar patterns and considering price slides is a useful method of price analysis. Feeder cattle prices depend on the weight of the cattle with lightweight cattle typically having the highest price per pound (or hundredweight) and lower prices for heavier cattle.  … Continue reading

September 1st Cattle on Feed Report Recap

The latest USDA Cattle on Feed report released Friday showed larger supplies of cattle placed into feedlots than most analysts expected prior to the report. The report showed a three percent increase in the number of cattle placed into feedlots during the month of August as compared to the same period last year. Average expectations prior to the report were that placements would be slightly lower than last year. … Continue reading