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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