Peel: Feedlots Weeks Away From Being Current On Fed Cattle Supplies

According to livestock market economist Dr. Derrell Pee, feedlots are only a few weeks away from being current on fed cattle supplies.

“In the near term, yes, I think we moved a lot of cattle. The marketing's in the last two Cattle on Feed reports have been very impressive. We really saw the peak in about February and since then we pulled them down, and we know that the numbers in general have been coming down, we're trying to work through this current pipeline of cattle. We got delayed because of the pandemic last year and that's what really set up the problems we've had all this year, but we're close.”

Peel noted as the markets sort through the numbers, USDA and politicians are ramping up efforts to expand packer capacity and strengthen the Packers and Stockyards Act.

“There's an awful lot of political motion out there right now to do something, and it really reflects the turmoil that we've been in for really about two years and the producer discontent that's out there, but it's being translated into some of these political initiatives. In the short run, I think we're going to fix our immediate problem, because cattle numbers are going to drop back below the current capacity here again in a matter of weeks, we may be almost there right now but it's not quite clear yet.”

Peel continues that in the long run, the potential for the industry to grow will depend on some long term investment in infrastructure.

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