Page 20 - MWC 10-5-2023s

IN THE CATTLE powerful for producers. On last 20 years The Midwest Cattleman · October 5, 2023 · P20

continued from page 19 one hand, we have the high- (See Figure
er feeder cattle prices, cur- 6). The next
Beef Cow Slaughter rent and deferred, which USDA Cat-
Beef slaughter continues incentivizes the desire to re- tle on Feed
to remain elevated above tain cows and heifers to get report will,
the 5-year average, on an profits in the future. Howev- in addition
annual basis, although the er, there are also atypically to feedlot
weekly slaughter rates have seasonal incentives to sell inventories
come more in-line during both cull cows and heifers at and market-
the last few months (see higher current market val- ings, indicate
Figure 5). During periods of ues than previously experi- the number
expansion, the typically sea- enced and forgo profits next of heifers on
sonal uptick in cow slaugh- year. feed. I antici-
ter in the fall is much small- pate this will
er. Seasonally that uptick Heifers on Feed still be high.
will not occur till the end Heifers as a percent of The telling
of September. Watching the total cattle on feed contin- report will be the December tire fall run. With the cur-
slaughter rate will provide ue to remain high – 40% – report as that will indicate rent Choice-Select spread
some indication of what eco- and remain at the highest how many heifers were sent favoring more quality meat
nomic force is proving most levels they have been in the to feedlots during the en- combined with cheapening
feedstuffs (corn, distillers,
forage) and higher feeder
cattle prices, there are some
reasons why feedlots may
continue to feed current in-
ventories longer rather than
buying in more expensive
feeder cattle. This could
have an impact on the rel-
ative composition and fill
of feedlots this fall delay-
ing placements and putting
downward pressure on feed-
er cattle prices.