Farm & Ranch
[AgriLife Today] Cattle market pressured by heavier weights, fewer heifer placements
Dr. David Anderson, Texas A&M AgriLife Extension Service livestock economist in College Station, said the recent cattle on feed report released by the U.S. Department of Agriculture depicts fewer heifers placed on feed, signaling continued expansion among producers across the country. (Texas A&M AgriLife Extension Service photo by Blair Fannin)
By: Blair Fannin
Writer: Blair Fannin, 979-845-2259, [email protected]
Contact: Dr. David Anderson, 979-845-4351, [email protected]
COLLEGE STATION – More feedlot placements than expected, coupled with large supplies of cold storage beef, will pressure cattle prices in the near term, according to a Texas A&M AgriLife Extension Service livestock economist.
Dr. David Anderson, livestock economist in College Station, said the recent cattle on feed report released by the U.S. Department of Agriculture depicts fewer heifers placed on feed, signaling continued expansion among producers across the country.
“The report has indicated the running themes we have had throughout 2015, which has been fewer placements and a trend in placing heavier animals,” he said. “This is being driven by fewer cows and calves in 2014 and continued in 2015. There were heavy financial losses by cattle feeder operators in 2015. They paid premiums for those animals and then the market dropped lower, forcing them to hold onto to those feeders and add more gain to compensate for the premium they paid.”
The USDA report indicated placements were slightly lower, about one percent less than the year before, Anderson said.
“More cattle were placed weighing over 700 and 800 pounds while total placements declined,” Anderson said. “The report indicated fewer placed, but heavier. The result of the cattle on feed report was half a percent lower than the year before. I think as the market digests this there will be bearish talk in terms of the futures market because placements are bigger than expected and marketings are lower than expected.”
Anderson said the report also included a quarterly breakdown of heifers on feed.
“This report historically goes back to 1996,” he said. “We found in the latest report this was the fewest number of heifers on feed Jan. 1 than in the past 20 years. This gives you more evidence of the strength of expansion going on. We’ve got more steers on feed than a year ago and a record low number of heifers on feed.”
Anderson pointed to another report, the beef cold storage report, that indicated a record supply of beef on hand.
“Throughout 2015, we built up a record supply of cold storage of beef,” he said. “In December, we put more beef in cold storage, more than we did in November. This points out there is a heck of a lot of beef in cold storage. In this case, it’s due to record imports of beef that we brought in, because of record high prices, strength of the dollar and drought in Australia. When it comes here it has to stay somewhere cold, so it stays in the cold chain.
“Going forward, most cold-storage beef is boneless beef that is made into ground beef. That’s a large supply we’ve got to work off going through 2016. As beef imports back off during the year, it will help bring those storage amounts down.”
To view Anderson’s video comments, see http://bit.ly/1RJbGny .
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By Barry Whitworth, DVM, MPH
With the prolonged drought, most pastures in Oklahoma end up in poor condition. With the lack of available forage, animals may go in search of alternative foods.
If oak trees are in the pastures, acorns may be a favorite meal for some livestock in the fall. This may result in oak poisoning.
Oak leaves, twigs, buds, and acorns may be toxic to some animals when consumed.
To read more, pick up a copy of the November edition of North Texas Farm & Ranch magazine, available digitally and in print. To subscribe by mail, call 940-872-5922.
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Silver bluestem is a perennial which grows in all areas of Texas. It can survive in almost all soil types, and in full sun conditions or in semi shade. It grows up to three feet tall and is easily recognized with the presence of the white fuzzy seed head. Also, one of the identifying characteristics of Silver bluestem is a bend in the stems at each node, causing the plants to take on a rounded shape as they mature.
To read more, pick up a copy of the November edition of North Texas Farm & Ranch magazine, available digitally and in print. To subscribe by mail, call 940-872-5922.
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Fall is here which means winter is closing in on us and before we officially get into winter, we need to make sure our factories are either producing or will be producing in a few months.
We have been pregnancy testing our cows this fall and if they are not bred or nursing a calf, we are bidding them adios. With annual costs somewhere between $900.00 and $1,000.00 per cow, those cows not producing a live weaned calf are costing us quite a bit.
To read more, pick up a copy of the November edition of North Texas Farm & Ranch magazine, available digitally and in print. To subscribe by mail, call 940-872-5922.
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