Feedlot Placements Up in 2018

The USDA reported the largest July cattle feedlot placement number since 2012, at almost 1.75 million head.  That resulted in the largest August feedlot inventory since 1996, at just over 11 million head.  USDA Livestock Analyst Shayle Shagam says that big placement number, 8% above July 2017, can be attributed to a number of things.

"Greater availability of cattle for placement in general, to about a half-percent more cattle available to be placed on feed. Add to that the availability of additional heifers, as producers had indicated they were slowing down the rate of expansion. So, those could be animals which were then being replaced in July."

Shagam noted feeder calves are fetching a bit more money than last year.

"In some areas, declining pasture quality putting pressure on some producers to put animals in feedlots."

The result of all this is a lot of beef coming into the market in about six months, and more downward pressure on prices.

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