More Cattle Coming In, Less Cattle Leaving Feedlots

USDA Economist Michael McConnell, sums up the latest cattle on fever report released by USDA.

"We have more animals coming into the feedlots, fewer of them leaving, and so that is how we end up with the higher inventory on May one versus a year ago.

“Total cattle inventory was up 2% from last year, with 6% of cattle placements up from a year ago. Marketing's were down 10% from the previous year.”

Due to extreme dry conditions.

That continues the pattern that we've seen through much of the year, where we've seen slower rate of marketing's out of feed lots, as well as slower steer and heifer slaughter, but much of that is likely due to the fact that, although beef prices have been increasing and seasonally have been higher than a year ago. The price for fed cattle right now has also been increasing, but at a higher rate. Larges for packers are not as strong now.”

Another trend that we are starting to see in the industry that is surfacing more and more is that for years, the cattle industry standard was roughly about 120 days on feed to finish an animal. That benchmark has since shifted. Today, far more cattle are being fed out to around 190 days. That's a dramatic increase that reflects the push for heavier carcass weights. Producers say the longer feeding period has become common across the industry, reshaping everything from feedlot management to market expectations. With today's Line on Agriculture report. I'm Lorie Boyer for the Ag Information Network.