August's Cattle on Feed Report

Last week's USDA Cattle on Feed Report gave placements in feedlots total 1.88 million head, 15 percent above a year ago. Shayle Shagam, USDA livestock analyst, saying that even though packers are paying less for fed cattle, feedlots are not trying to hold back cattle from packers to drive higher prices.

Shagam: "To the extent that you are holding those cattle back, they are getting heavier which puts more pressure on the supplies of beef going forward. If anything, this report would indicate that they were working very hard to try and get currency and get their numbers down so we don't see that big bulge of cattle coming out of feedlots later in the year that we saw last year."

In Idaho, the number of cattle on feed was 225,000 head, which 2 percent lower than the previous month, but up 5 percent from a year ago. An estimated 45,000 head were placed on feed a jump up of 25 percent higher from the previous month and 32 percent higher compared to a year earlier.

In Washington, the number of cattle on feed was at 180,000 head which was 5 percent lower than the previous month as well as 8 percent lower than a year ago. An estimated 35,000 head were placed on feed up 17 percent from the previous month and 17 percent higher compared to a year earlier.

In Colorado, the number of cattle on feed in feedlots with a capacity of 1,000 head or greater was estimated at 800,000 head as of September first. That was 1 percent below the previous month's inventory, but 3 percent above a year ago. An estimated 170,000 cattle and calves were placed on feed during August, 48 percent higher than the previous month's placements and 31 percent above a year ago.