Cattle on Feed Up 3 Percent, Smoke Impedes Second Hay Cutting

Cattle on Feed Up 3 Percent, Smoke Impedes Second Hay Cutting

Drought Monitor Update August 20

Montana Drought Monitor Update, August 20, 2015. Click image to learn more.

Extreme drought continues to hold its grip on portions of far Western Montana where fire danger remains immediate concern. Warm, dry air continued to dominate the West. Click here to hear from Idaho ranchers impacted by the large Soda Fire.

California continues to deal with its ongoing drought. Water managers and farmers are adapting their practices to help conserve water and reduce economic loss in the state.

During the next 6-10 days, chances are likely Montana will experience warmer than normal temperatures with a strong ridge holding its grip on the West.

View the most current Montana conditions from the U.S. Drought Monitor.

Montana Weekly Auction Report – August 21

Market: Public Auction Yards, Miles City

Receipts: 2,398; Last Week NA; Last Year NA

Compared to last report: The majority of feeder cattle offered this week were yearlings. Quality this week was average to attractive with a few long strings of very attractive yearlings. Yearlings offered this week come both off grass as well as out of backgrounding lots. Overall flesh conditions were light to moderate this week. Even backgrounded yearlings were in light to moderate flesh and sold equally as well as grass cattle.

Weigh-up cows sold overall with light to moderate demand on mostly light offerings. Demand for Slaughter cows was light to moderate this week with the best demand seen for boning and lean cows. Fleshy breaking cows sold on light demand as packer buyer back off on these offerings. This allowed for feeding cow buyers to purchase some of these offerings to return to the country to feed. A large run of cull bulls continues to come to town after the breeding season. Many of these bulls in very light to light flesh.

Read more in USDA’s latest Montana Weekly Market Report.

August Cattle On Feed Report

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.0 million head on August 1, 2015. The inventory was 3 percent above August 1, 2014.

Placements in feedlots during July totaled 1.55 million head, 1 percent below 2014. Net placements were 1.49 million head. During July, placements of cattle and calves weighing less than 600 pounds were 365,000 head, 600-699 pounds were 235,000 head, 700-799 pounds were 327,000 head, and 800 pounds and greater were 620,000 head. Placements are the lowest for July since the series began in 1996.

Marketings of fed cattle during July totaled 1.73 million head, 3 percent below 2014. Marketings are the lowest for July since the series began in 1996.

Read more from USDA’s latest Cattle on Feed Report.

National Feeder & Stocker Cattle Summary – August 21

Receipts This Week:  Total 178,200 – 136,300 (Auctions); 24,500 (Direct); 17,400 (Video/Internet)

Compared to last week: calves and yearlings traded weak to 5.00 lower with a number of instances 10.00 lower from midweek on. Direct sales traded steady to 2.00 lower early in the week, then turning 3.00-7.00 lower late week. Cattle futures seem to keep the focus on the bearish side, not wanting to show much life. Cattle futures on Wednesday reared their ugly head closing with sharp triple-digit losses, making new lows for the month. Market psychology keeps focus on negative fundamentals, with plentiful supplies and lower prices for competing meats, struggling outside markets, lower meat exports and the focus of trading the market on what is happening right now.

In the next 30-45 days auctions should see a good number of feeder cattle moving off pasture into feed yards. Unless the fed cattle market gets a move up the feeder cattle market won’t be able to maintain the premiums that has been paid for yearlings and calves the previous months.Time is running out to take advantage of summer grilling demand and with the fed cattle market remaining stagnant, cut-out values have made some steady gains over the last couple of weeks heading into Labor Day Weekend.

Auction volume included 54 percent weighing over 600 lbs and 36 percent heifers.

Read more from the USDA’s latest National Feeder & Stocker Cattle Summary.

Weekly Montana Hay Report – August 21

Compared to last week: Alfalfa was steady this week as rains across the northern and eastern parts of the state over the past few weeks have eased some forage concerns. The urgency to find hay seen earlier in the month seems to have scaled back as pasture and range conditions have improved. Demand for Alfalfa was moderate this week. Grass hay experienced many of the same issues as lighter demand was seen across the state this week. Many producers seem willing to wait this out and see if market conditions improve as we head into fall.

The western half of the state continues to remain in extreme drought conditions and wildfires continue to plague the area. Hay to ship to this region of the state remains in good demand and has helped provide some stability to the rest of the state’s hay markets. Additionally, the wildfires have caused smoky conditions for much of the central and eastern half of the state causing low visibility conditions. This has impeded many finishing up second cutting or starting on third as hazy, overcast conditions make for longer dry times.

• Alfalfa:
  • Supreme: Small Squares, 200.00-225.00
  • Good: Large Squares, 150.00-170.00
  • Fair: Large Squares, 115.00-140.00; Large Rounds, 120.00
• Grass:
  • Good: Large Rounds, 120.00
  • Fair: Large Rounds, 100.00
• Timothy Grass:
  • Premium: Small Squares, 180.00-210.00
  • Good: Large Rounds, 120.00; Small Squares, 150.00

Read more from the USDA’s latest Weekly Montana Hay Report.