According to USDA, there were 2% more cattle and calves in feedlots this on January 1st, compared to 2019 placements, and in December 3% more than a year before.  USDA Livestock Analyst, Shayle Shagam, said there are two more telling numbers in the report:

 

  • There are 4% more heifers and heifer calves in feedlots than a year ago
  • Those heifers comprise a little more total inventory than one ago.

 

But Shagum said whether this means a halt to expansion, or a contraction it's hard to know. There could be several factors here.  Cow/calf operators he noted have seen poor returns.

 

“Compound to that the fact that you're tight for supplies in much of the country. Now some of the forge conditions have improved although the quality is very spotty. So that may be a non-price factor that influencing producers again at this time of year you're thinking do I have enough forge to over-winter my animals?”

To get them to the spring breeding season, we'll learn more about intentions on Friday January 31st with the USDA's big cattle inventory report.

 

 

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