USDA’s recent Cattle on Feed report showed higher than expected placements for the month of July.
Industry leaders were expecting a decline in numbers, mainly due to drought conditions across the country. 1.8 million head were placed into feedlots during July, which is up 2 percent from last year, bringing feedlot inventories to 11.2 million. Shayle Shagam with the USDA’s World Ag Outlook Board explains.
“That remains largely a function of the drought that, without the available forage with low hay production, relatively high feed costs, cow- calf operators are likely putting larger than what would normally have been expected numbers of animals on feed,” said Shagam.
He says it is too early to tell when feedlot inventories will peak, but he believes supplies will be tight going forward.
Related:
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