Page 6 - MWC 03-11-2021
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The Midwest Cattleman · March 11, 2021 · P6
       Cattle on Feed and Feeder Supplies

       By Derrell Peel - Oklahoma State University
                            The Febru- than last year.                      cattle were car-
                         ary Cattle on      The feedlot situation in early  ried over into
                         Feed    report 2021 is a carryover from the dis- 2021 and like-
                         from    USDA ruptions and unusual dynamics  ly is reflected
                         showed a Feb- last year.  For the entire year in  in the relative-
                         ruary 1 feed- 2020, feedlot placements were  ly large Janu-
                         lot inventory  down 4.0 percent.                   ary  placements.
                         of 12.1 million    In the last half of the year  Feeder  supplies
                         head,    101.5 feedlot placements were almost  are        somewhat
      percent of one year ago.           unchanged year over year, up  front-loaded
         January    placements     were 0.3 percent.  However, this aver- early in 2021 but
      2.017 million head, up 3.2 percent  age belies dramatic dynamics as  should tighten up
      year over year.  Placements were  feedlot placements in the third  in the second half
      higher than the average pre-re- quarter were up 8.5 percent year  of the year.
      port estimate but at the top end  over  year  while  placements  in
      of the range of analyst estimates.   the fourth quarter were down 7.0
      The increase in placements was  percent from the prior year.
      mostly in cattle weighing 700-900     Total estimated feeder sup- Will higher corn prices temper
      pounds but did also include a 5.1  plies outside of feedlots on Jan-       the expectation for higher
      percent year over year increase  uary 1 were 25.66 million head,                feeder cattle prices?
      in cattle weighing less than 600  down just 0.2 percent year over
      pounds.                            year.   The 1.3 percent year over
         January    marketings     were year  decrease  in the  2020 calf         By Dr. Andrew Griffith, Assistant Professor, University of Tennessee
      1.822 million head, down 5.6 per- crop, even when adjusted by de-       Will higher corn prices or the  means there is less money avail-
      cent from one year ago and about  creased veal slaughter and in- expectation of higher corn pric- able for the feedlot to pay for feed-
      as expected.   However, January  creased feeder cattle imports,  es temper the expectation for  er cattle. However, live cattle fu-
      2021 had two less slaughter days  would have suggested a bigger  higher feeder cattle prices this  tures have been gaining strength
      than the year before meaning  decrease in the feeder supply on  year?                                   which provides support for feeder
      that  daily average marketings  January 1.                              The simple answer is yes. If  cattle prices. Thus, corn and other
      this year were 3.8 percent higher     It appears that some feeder  input costs increase, then that                    continued on page 17


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