Derrell S. Peel, Oklahoma State University Extension livestock marketing specialist
The November USDA Cattle on Feed report was well anticipated and should not cause big surprises in the market.
The pandemic and other market shocks (i.e., packing plant fire, unprecedented winter storm, cyberattack, etc.) since 2019 have resulted in impacts and residual effects that affect cattle and beef markets in different ways and over different lengths of time.
The combination of drought impacts and high crop prices means that beef cattle producers face significantly higher feed costs this winter. Increased feed costs have been impacting feedlots for several months, and the impacts will grow as cow-calf and stocker/background producers face additional feed and supplement needs this winter.
Welcome rains fell across much of Oklahoma recently, with most areas receiving 0.5-2 inches of precipitation. September was exceptionally dry across the state, with drought conditions building quickly.