Cattle Placements into Feedlots Up Sharply in September

Placements of cattle into U.S. feedlots were up sharply since September. The USDA says September 2023 placements were 2.206 million head, above pre-report expectations and up 6% from September 2022. Those cattle will be marketed starting early next year.

Marketings for September were down 11% from a year ago at 1.663 million head, while the total number of cattle on feed at the start of October was 11.58 million head, the highest total since the series of reports began.

The on-feed total does show higher than a year ago numbers of heifers and heifer calves.

The larger than expected placement and on-feed categories could be viewed as negative for cash, wholesale, and futures prices, but that will also depend on beef demand.

EDITOR’S TAKE:

The lower numbers of cattle on feed over the past couple of years, coupled with strong consumer demand, has been good for cattle producers overall. However, cattle producers always respond to strong market signals and eventually bring supply more in line with demand. Predictions are for strong consumer demand to continue, thus, propping up prices at the farm-gate. Assuming that is the case, cattle producers should be in a strong financial position again in 2024. Make sure you reach out to the cattle producers in your area by putting your inventory on AgTruckTrader.com.