The Cattle report issued by USDA confirms that cyclical herd expansion in the U.S. is over. The numbers indicate that while cattle inventories have stopped growing no major liquidation is underway.
Derrell Peel - Oklahoma State University
Weather challenges in 2019 led to many questions about the quantity and quality of hay production and supply heading into 2020.
The new year brings with it several changes in ongoing market dynamics, some new opportunities, and some new risks and continuing challenges for cattle and beef markets.
No matter how cow-calf producers judge the past year – good, just okay or disappointing – there is value in taking some time to analyze the reasons for the outcome.
Sharply higher carcass weights have boosted beef production, though another round of winter weather hitting parts of cattle feeding country may temper that in the last few weeks of the year.
Severe weather inevitably means management challenges and higher costs for producers but may also have market impacts if poor conditions are widespread enough.
USDA's cattle on feed report counted 11.83 million head on feed, which is 101.2% of last year and up 4.8% from October as feedlot inventories increase to a seasonal peak.
Preconditioning programs add value to cattle and the value is consistently reflected in premiums for certified preconditioned calves sold under specific programs.
Boxed beef prices increased about ten percent over the month of October into early November, a significantly higher increase than the normal seasonal bump.