USDA is Discontinuing A Major Cattle Report, And it Could Now Spur More Volatility For Cattle Prices
04/13/24- U.S. Farm Report Marketing Roundtable 2
USDA announced this week it's nixing a major cattle inventory report. The July Cattle Inventory report, which is only one of two inventory reports released each year, will be no more.
The National Agricultural Statistics Service (NASS) announced it’s also canceling all county estimates for crops and livestock starting this year. In the announcement, NASS blamed budget cuts from the most recent appropriations bills.
It now intends to only release one cattle inventory report annually in January.
“It's going to be something to the livestock market and the grain markets are going to have to get used to,” says Chip Nellinger, co-owner of Blue Reef Agri-Marketing. “It obviously has implications as far as what the herd size and the different classes and weights across our cattle herd are. So that's going to be a big unknown in the middle of the year.”
Nellinger says the other side is how the report could also impact the grain markets.
“What’s that mean to feed demand? How many head of cattle are on feed,” says Nellinger.
Related News: NASS Discontinues County Estimates For Crops And Livestock and July Cattle Report
At a time when tight cattle supplies generated record-high cattle prices already this year, the timing of no July Cattle Inventory report is also murky. Arlan Suderman of StoneX Group says it will have an impact on the cattle markets.
“It adds to the volatility, it definitely does,” says Suderman. “The frustration in the industry is when they look at some of the things that USDA is spending money on, that don't seem to be part of the original mission of the agency, and then short change us on issues that really have an economic impact on the development and progress of the economy of this industry. That's where the frustration is.”
Related News: U.S. Cattle Inventory Reaches 73 Year Low
NASS’ decision to cancel the report is garnering frustration from farm group, including the National Cattlemen's Beef Association (NCBA). NCBA also thinks this could mean more volatility for the market and make it more difficult for producers to see into the future when it comes to supplies.
USDA tried to cut the July cattle inventory report in 20-16 and ended up reinstating it. NCBA calling on NASS to reverse its decision again.
