Analyst’s estimates for Friday’s ‘Cattle on Feed’ report
- Overall, analysts expect to see a notable increase in the number of cattle on feed, a result of expected strong placements during August at a time when marketings for the month were down compared to year-ago levels.
- August 2020 had one more Sunday and one less Friday than August 2019. Since plants do not run on Sunday, one less day of slaughter will impact the number of cattle marketed.
- Daily estimates show that steer/heifer slaughter for August was 3.5 percent lower compared to year-ago levels.
- Monday through Friday slaughter averaged 2 percent below year ago levels.
- August Saturday slaughter averaged 54,482 hd./day, 6.6 percent higher than 2019.
- Analysts expect placements in August were up 6 percent compared to 2019.
- If accurate, this will put placements close to 2 million hd. or 111,000 hd. higher than year-ago levels.
- Producers pushing cattle into feedlots due to drought has likely caused higher placements.
- Weekly feeder cattle sales data supports analysts projections of increased placements as weekly feeder cattle sales were up 15.3 percent compared to last year.
- Concerns surrounding beef demand during the winter months, especially regarding foodservice demand, remains a key risk factor for feedlots looking to add to their inventory.
- Increased imports from Mexico likely supported the total number of cattle placed on feed.
- Feeder cattle imports from Mexico in the four weeks ending August 29th were 86,725 hd., 37 percent higher than year-ago levels.
- Feeder cattle imports from Canada during this same period were 4,994 hd., down 36 percent compared to 2019.
- Analysts expect on feed numbers as of September 1st to be somewhere around 11.355 million hd., 373,000 hd. more or 3.4 percent higher than year-ago levels.
- Feedlots still have a sizable number of long fed cattle, and combined with increased carcass weights, this continues to weigh on the spot market trade.
Wal-Mart, Cargill, McDonald’s partner to improve ranch lands in the Northern Plains
- In an initiative led by World Wildlife Fund (WWF), Wal-Mart, Cargill and McDonald’s are investing more than $6 million to make lasting improvements to the grasslands of the Northern Plains.
- The Ranch Systems and Viability Planning project will support ranchers in Montana, Nebraska and South Dakota.
- The project will include technical expertise and training that will help improve grazing practices.
- WWF plans to work with ranchers on private and tribal lands to provide extension services in one-on-one settings and group workshops, offer technical advice and provide cost share to help ranchers design, record and implement ranch plans.
- The RSVP project will aid ranchers so they continue to provide habitat for wildlife, store carbon, filter clean water, produce nutritious food and support communities for years to come.
USCA; Live virtual conversation
Friday, September 25, 2020 at 4:30 PM MDT with Senators Jon Tester and Mike Rounds. You can tune in through USCA’s Facebook page or YouTube Channel!
United States Cattlemen’s Association YouTube: https://www.youtube.com/channel/UChbLBYh95NNRJzJtVaq65Ew
United States Cattlemen’s Association Facebook: https://www.facebook.com/uscattlemens
Boxed beef prices
- Choice boxed beef: $215.87 (+0.43)
- Select boxed beef: $207.60 (+1.30)