|
April cattle on feed numbers second highest in history
By Jennifer Bremer April cattle on feed numbers in the High Plains and Midwestern states are the second highest since the series began in 1996. The U.S. Department of Agriculture Cattle on Feed report released April 20 showed cattle and calves on feed for slaughter in U.S. feedlots of 1,000 head or more to total 11.6 million head. The inventory was down 1 percent from a year ago, but up 7 percent from 2005. "The stakes are definitely higher now for feedlot operators," said John Lawrence, director of the Iowa Beef Center. "March and April have been the first time these producers have seen a profit in several months, so they are being cautious with their entire operation." He said the industry had gone through a long period of year after year increases in cattle on feed numbers. Then in March those numbers declined a bit, but the numbers still remained larger than average. "Now we have some supply challenges after coming off record high prices for the past couple of weeks," he said. Lawrence does expect strong prices to continue throughout the summer months since placements were lower from September 2006 through January 2007. Feedlots are also staying more current on their marketings, which helps the prices as well. "I would expect prices to stay in the $90s for a while, with an expected low in the upper $80s in August," he said. Placements in feedlots during March totaled 1.97 million--a 7 percent increase from 2006 and 12 percent above 2005, according to the report. However, marketings of fed cattle during March totaled 1.85 million head--down 6 percent from 2006. Nebraska feedlots contained 2.48 million cattle on feed, a total increase of 3 percent from last year, the largest April 1 inventory in that state since the series began. Placements were also up 4 percent over last year. Kansas feedlots had a 4 percent decrease in cattle on feed for April, but 2 percent above the number on hand March 1, 2007, with a total of 2.48 million head. Placements during March were 6 percent higher than a year ago and 29 percent above February 2007 placements. Iowa's cattle on feed for slaughter market totals were virtually unchanged from last month, but were down 7 percent from a year ago. Feedlots with a capacity greater than 1,000 head had 530,000 head on feed, also unchanged from last month, but up 6 percent from last year. Iowa placements during March showed an increase of 33 percent from last month and a 9 percent increase from last year. Lawrence said the industry has made a short-term adjustment to the high grain prices. "While many cattle feeders are concerned about the long term affect high grain prices could have on their operations, it has helped feedlots to stay current on their marketings and keep carcass weights down at a manageable level," he said. He said fear of what the cattle prices could do have kept feedlots current in their marketing of slaughter cattle. "Right now Mother Nature plays an important role in what will happen in the future. Widespread rain or a dry spell at critical times in the growing season could scare the corn market into prices that we aren't ready for," Lawrence said. He expects western states to hold heifers, which should help keep feeder cattle prices high since the available inventory will be lower. Lower placements always help keep fed cattle prices strong in the future. "The fear of the unknown should help keep agriculture in check," he concluded. Jennifer Bremer can be reached by phone at 641-938-2342 or by e-mail at jbremermaj@hotmail.com. Date: 4/26/07
Copyright/Privacy
Copyright 1995-2009. High Plains Publishers, Inc. All rights reserved. Any republishing of these pages, including electronic reproduction of the editorial archives or classified advertising, is strictly prohibited. If you have questions or comments you can reach us at High Plains Journal 1500 E. Wyatt Earp Blvd., P.O. Box 760, Dodge City, KS 67801 or call 1-800-452-7171. Email: webmaster@hpj.com |
Market Snapshot
|