Aided and abetted by the drought, feedlots put collectively one other month of enormous placements in July. July placements had been 101.8 % of final 12 months, regardless of rising indications that feeder provides are declining. July 1 estimated feeder provides exterior of feedlots had been down 2.7 % 12 months over 12 months. Drought continues to pressure cattle to market ahead of deliberate. Oklahoma public sale volumes of feeder cattle for the previous six weeks are up 10.9 %, according to the unexpectedly massive placements in July.
July feedlot placements included a 2.5 % lower in feeders weighing over 700 kilos, which was greater than offset by a 9.5 % improve in feeders weighting lower than 700 kilos. Determine 1 exhibits that that is the third month in a row with elevated placements of light-weight feeders and decreased placement of heavy feeders. Complete feedlot placements in Could – July had been down 1.0 %, with placements beneath 700 kilos up 6.0 % and placements over 700 kilos down 4.7 %. These light-weight placements will end from November into the primary quarter of 2023.
In actual fact, feedlot placements previously six months, since February, have totaled 10.91 million head, up 0.8 % 12 months over 12 months, and account for 97.2 % of the 11.224 million head on-feed stock on August 1. In these six months, placements weighing beneath 700 kilos are up 3.5 % 12 months over 12 months, whereas placements over 700 kilos are down 0.7 %. All of this means that feedlots are considerably back-loaded with comparatively tighter numbers ending within the August – October interval and up to date light-weight placements ending November and later.
The implications for feeder cattle markets could also be much more essential. Elevated light-weight placements, particularly since Could, seemingly contains fall calves marketed proper off the cow, early weaned spring calves and summer time stockers marketed forward of schedule. Pasture and vary circumstances are at present rated at 52 % poor/very poor, the worst stage for this time of 12 months since 2012. It seems that the provision of calves and feeder cattle obtainable this fall will seemingly be considerably smaller as a result of many cattle have already moved to market.
Feeder cattle costs have been fairly robust this summer time with heavy feeder costs shifting greater by greater than seasonal quantities and calf costs shifting counter-seasonally greater. In Oklahoma auctions, 750-pound steers reached the best costs of the 12 months in mid-August and 500-pound steer calves reached the best stage because the seasonal peaks in March. The pattern for greater feeder cattle costs might severely diminish or offset seasonal lows for calves this fall.
Dr. Derrell Peel discusses the long-reaching impression the drought can have on the cattle markets for years to come back on the Livestock Advertising and marketing section from SunUp TV from August 6, 2022.