Steve Stephenson, Certified Land Sales Specialist
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Steve Stephenson

Monthly Cattle on Feed Report & Comments


About all I have to say this month is check out the heifer calf numbers that went on feed.

Keep up the good work and don't shoot yourself in the foot. Keep those heifers on the rail.

If you disagree with my position on replacement heifers, please let me hear your side.

 

Late note: Check out the new US Cattle Inventory below - Lowest numbers since 1956!!!

 

 

 

US Cattle on Feed Report as of January 2012

 


 Released January 20, 2012, by the National Agricultural Statistics Service
(NASS), Agricultural Statistics Board, United States Department of
Agriculture (USDA).

United States Cattle on Feed Up 3 Percent

Cattle and calves on feed for slaughter market in the United States for
feedlots with capacity of 1,000 or more head totaled 11.9 million head on
January 1, 2012. The inventory was 3 percent above January 1, 2011. The
inventory included 7.28 million steers and steer calves, up 1 percent from
the previous year. This group accounted for 61 percent of the total
inventory. Heifers and heifer calves accounted for 4.50 million head, up
6 percent from 2011.

Placements in feedlots during December totaled 1.68 million, 6 percent below
2010. Net placements were 1.59 million head. During December, placements of
cattle and calves weighing less than 600 pounds were 550,000, 600-699 pounds
were 390,000, 700-799 pounds were 365,000, and 800 pounds and greater were
378,000.

Marketings of fed cattle during December totaled 1.80 million, 2 percent
below 2010.

Other disappearance totaled 91,000 during December, 40 percent above 2010. 

 

 

US Cattle Inventory as of January 1, 2012

 

Released January 27, 2012, by the National Agricultural Statistics Service
(NASS), Agricultural Statistics Board, United States Department of
Agriculture (USDA).

January 1 Cattle Inventory Down 2 Percent

All cattle and calves in the United States as of January 1, 2012 totaled 90.8
million head, 2 percent below the 92.7 million on January 1, 2011. This is
the lowest January 1 inventory of all cattle and calves since the 88.1
million on hand in 1952.

All cows and heifers that have calved, at 39.1 million, were down 2 percent
from the 40.0 million on January 1, 2011.

  • Beef cows, at 29.9 million, were down 3 percent from January 1, 2011.

  • Milk cows, at 9.2 million, were up 1 percent from January 1, 2011.

Other class estimates on January 1, 2012 and the change from January 1, 2011,
are as follows:

  • All heifers 500 pounds and over, 19.4 million, down 1 percent.

  • Beef replacement heifers, 5.2 million, up 1 percent.

  • Milk replacement heifers, 4.5 million, down 1 percent.

  • Other heifers, 9.6 million, down 2 percent.

  • Steers weighing 500 pounds and over, 16.1 million, down 2 percent.

  • Bulls weighing 500 pounds and over, 2.1 million, down 5 percent.

  • Calves under 500 pounds, 14.1 million, down 3 percent.

  • Cattle and calves on feed for slaughter in all feedlots, 14.1 million, up
1 percent.

  • The combined total of calves under 500 pounds, and other heifers and
steers over 500 pounds outside of feedlots was 25.7 million, down 4
percent.

Calf Crop Down 1 Percent

The 2011 calf crop was estimated at 35.3 million head, down 1 percent from
2010. This is the smallest calf crop since the 34.9 million born during 1950.
Calves born during the first half of 2011 are estimated at 25.7 million, down
1 percent from 2010.

Revisions

All inventory and calf crop estimates for July 1, 2010, January 1, 2011, and
July 1, 2011 were reviewed using calf crop, official slaughter, import and
export data, and the relationship of new survey information to the prior
surveys. Based on the findings of this review, small adjustments of less than
one-half percent were made to previously released inventory estimates by
class and calf crop United States and Canadian Cattle Inventory as of August 2011

 

 



 All NASS reports are available free of charge on the NASS Home Page.

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Cattle on Feed - an Analysis


When you read the Cattle on Feed numbers above, you'll be amazed.  From the cowman's point of view, it couldn't get much better.

These indicators tell him/her that prices are going to be good for some time. The more weight he can get on his calves and the better preconditioning they have, the better the feedlot buyers will like them. And the more they'll pay.

What is the Cattle on Feed Report?

The Cattle on Feed Report was started by the USDA  in 1996 to use as an indicator of the feeder cattle placed and the fed cattle marketed in major feedlots nation wide. The relationship of these two indicators helps to analyze the many factors involved in the beef industry monthly, on an historical basis.

How does this affect investing in Arizona ranch real estate?

Cattle inventory, in every class, for the entire US is the lowest in years. The spring calf crop is expected to be the lowest since the 50’s. No herd expansion is expected for, at least, 2 more years. You can get into the cattle business, today, for less money than in the past 10 years. 

There is only one secret to the cattle business, as in any other, buy cheap and sell high. Now is the time to buy cattle and Land.

Contact me and we’ll put a pencil to it, 540-280-0100.  Steve@SteveStephenson.us.  I have the expertise and personal knowledge of the cattle industry you need to consider buying Arizona ranch real estate.  Ranching and real estate are a complex business but I can guide you to a wise decision.

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