Placements, Weights Down for Feedlots

The USDA’s latest report on cattle placements into feedlots show declines in number of placements and lower weights compared to October of last year.

Livestock Analyst Shayle Shagam said it is unclear if the herd expansion has finally slowed down, or stopped altogether, but what is clear is that feedlots and cattle producers are hurting.

“Right now we’ve got your 700-800 pound feeder calves in Oklahoma City are running about $128 a hundredweight and that’s down from about $177 a year ago. You can see that you had these very, very good prices which was partially what triggered the expected expansion.”

Shagam says the dramatic drop in prices could force herd contraction until prices rebound.