The final Cattle on Feed Report of 2022 was generally in line with pre-report estimates. Dr. Derrell Peel, a livestock market economist with the Oklahoma State University Extension Service, talks about the numbers.
“This December cattle on feed report shows placements in the month of November at 98 percent of last year. Marketing’s in November were 101 percent last year, and so the December 1 on-feed total comes in at 97 percent of last year.”
The placement numbers were on the high end of pre-report estimates.
“The placements are a little bit bigger than the average pre-report estimates, kind of at the top end of the range, although a couple of analysts had them about that level, and I know there was quite a bit of variation in the auction volumes and other things that we use to try to generate those estimates, so I don’t think it’s a big surprise, but it’s a little bit bigger. But the bottom line is the on-feed inventory is still coming down, and that’s probably what’s most important as we go forward here into the new year.”
The marketings number was what the trade expected over a year ago.
“We’re continuing to market cattle at a very timely pace. As we start to pull these numbers down, obviously, numbers are going to get tighter going forward. Obviously, marketings will come down simply because there won’t be as many cattle at some point in time. But right now, we’re moving cattle, and this contributes to the fact we’re going to end up the year with record beef production in 2022. Slaughter and beef production, on a weekly basis, appears to be moderating a little bit. I think we’re kind of turning that corner, if you will, still moving cattle at a pretty brisk pace out of these feedlots.