US Cattle Placements Surprise With Larger Than Expected Decline
Cattle placements in the US fell more than expected in August, according to the latest Cattle on Feed report from the USDA-National Agricultural Statistics Service's (NASS). The report showed a -9.2% decline in cattle placements compared to last year, with an average pre-report estimate of a -1.8% decrease.
The top four cattle feeding states of Nebraska, Kansas, Texas, and Colorado all reported declines in cattle placements in August from a year ago, with Nebraska seeing a 65,000-head (-14%) decline. Corn prices have moved sharply higher since the summer months, rising from $4.08 per bushel in early June to last week's price of $4.99 per bushel.
The dry conditions are likely influencing available feed supplies, with monthly alfalfa hay prices over $200 per ton in July and other hay prices at $143 per ton. The drought remains in focus for the cattle sector, with USDA reporting that as of Sept. 15, approximately 58% of the cattle inventory is within an area experiencing drought.