• Skip to primary navigation
  • Skip to main content
Texas and Southwestern Cattle Raisers Association

Texas and Southwestern Cattle Raisers Association

To Honor and Protect the Ranching Way of Life

  • Who We Are
    • Why Join
    • Leadership
    • Staff
    • TSCRA Partners
    • FAQs
    • Newsroom
    • Sponsorships
    • Employment
  • What We Do
    • Theft and Law
    • Issues and Policy
    • Education
    • Young Cattle Raisers
    • The Cattleman Magazine
    • Disaster Relief Fund
    • Cattle Raisers Insurance
    • Cattle Raisers Trading Co
  • Events
    • Cattle Raisers Convention
    • Summer Meeting
    • Policy Conference
    • Ranch Gatherings
    • Ranching 101
  • Member Center
    • Join
    • Renew
    • Instructions
  • TSCRA Store
  • Show Search
Hide Search

Cattle market pressured by heavier weights, fewer heifer placements

Dr. David Anderson, Texas A&M AgriLife Extension Service livestock economist, said the recent USDA cattle on feed report depicts fewer heifers placed on feed, signaling continued expansion among producers across the country. Texas A&M AgriLife Extension Service photo by Blair Fannin
Dr. David Anderson, Texas A&M AgriLife Extension Service livestock economist, said the recent USDA cattle on feed report depicts fewer heifers placed on feed, signaling continued expansion among producers across the country. Texas A&M AgriLife Extension Service photo by Blair Fannin

Source: AgriLife Today
More feedlot placements than expected, coupled with large supplies of cold storage beef, will pressure cattle prices in the near term, according to a Texas A&M AgriLife Extension Service livestock economist.
Dr. David Anderson, livestock economist in College Station, said the recent cattle on feed report released by the U.S. Department of Agriculture depicts fewer heifers placed on feed, signaling continued expansion among producers across the country.
“The report has indicated the running themes we have had throughout 2015, which has been fewer placements and a trend in placing heavier animals,” he said. “This is being driven by fewer cows and calves in 2014 and continued in 2015. There were heavy financial losses by cattle feeder operators in 2015. They paid premiums for those animals and then the market dropped lower, forcing them to hold onto to those feeders and add more gain to compensate for the premium they paid.”
The USDA report indicated placements were slightly lower, about one percent less than the year before, Anderson said.
“More cattle were placed weighing over 700 and 800 pounds while total placements declined,” Anderson said. “The report indicated fewer placed, but heavier. The result of the cattle on feed report was half a percent lower than the year before. I think as the market digests this there will be bearish talk in terms of the futures market because placements are bigger than expected and marketings are lower than expected.”
Anderson said the report also included a quarterly breakdown of heifers on feed.
“This report historically goes back to 1996,” he said. “We found in the latest report this was the fewest number of heifers on feed Jan. 1 than in the past 20 years. This gives you more evidence of the strength of expansion going on. We’ve got more steers on feed than a year ago and a record low number of heifers on feed.”
Anderson pointed to another report, the beef cold storage report, that indicated a record supply of beef on hand.
“Throughout 2015, we built up a record supply of cold storage of beef,” he said. “In December, we put more beef in cold storage, more than we did in November. This points out there is a heck of a lot of beef in cold storage. In this case, it’s due to record imports of beef that we brought in, because of record high prices, strength of the dollar and drought in Australia. When it comes here it has to stay somewhere cold, so it stays in the cold chain.
“Going forward, most cold-storage beef is boneless beef that is made into ground beef. That’s a large supply we’ve got to work off going through 2016. As beef imports back off during the year, it will help bring those storage amounts down.”
To view Anderson’s video comments, see http://bit.ly/1RJbGny or watch below.

Written by:
kristin
Published on:
January 27, 2016

Categories: General

Recent Posts

Crime Watch: Bull shot near Iowa Park

February 1, 2023

Texas & Southwestern Cattle Raisers Association reports a one-year-old registered Red Angus bull …

Continue Reading about Crime Watch: Bull shot near Iowa Park

Crime Watch: Trailer stolen in Lewisville

February 1, 2023

Texas & Southwestern Cattle Raisers Association Special Ranger Brad Oliver, District 11 in North …

Continue Reading about Crime Watch: Trailer stolen in Lewisville

Texas crop progress and condition for Jan. 30

January 31, 2023

Most of the state received from trace amounts up to 3 inches of precipitation this week with areas …

Continue Reading about Texas crop progress and condition for Jan. 30

Footer

Who We Are

Why Join
Leadership
Staff
TSCRA Partners
FAQs
Newsroom
Sponsorships
Employment

What We Do

Theft and Law
Issues and Policy
Education
Young Cattle Raisers
The Cattleman Magazine
Cattle Raisers Insurance
Cattle Raisers Trading Co.
Texas and Southwestern Cattle Raisers Association

Information

Cattle Raisers Blog
News Releases
Bereavements
Events
Media Kit
Tip Hotline
Get Involved
Links

Membership

Membership Center
Membership Center Instructions
Join
Renew
  • Email
  • Facebook
  • Instagram
  • Twitter
  • YouTube

PO BOX 101988
FORT WORTH, TX 76185

1-800-242-7820

© 2023 Texas & Southwestern Cattle Raisers Association; All Rights Reserved.

COPYRIGHT | PRIVACY POLICY | TERMS OF USE