Despite placements of cattle in to feed lots during May being 3% below May a year ago, and marketing’s out of feedlots higher we still have on June first a total inventory of cattle in feed lots of a thousand head capacity or greater 11.7 million head. 23 years. USDA Livestock Price Analyst, Seneca Heron, told us the 3% decline in placements in May not really a surprise because of a couple of factors first.
Rising costs for corn that we’ve seen here in May and June; also higher hay prices plus, “The availability of pasture which has been very very good over the past two months,” Heron said.
USDA reporting 71% of the nation’s pasture and range lands in good to excellent condition and so,” We’re likely seeing more animals being held on pasture before heading to the feed lots,” Heron added.
So that may limit the increases in beef production this year and next, pushing more of that output in to 2020 or 2021.