The final Cattle on Feed report of 2023 showed that December feedlot inventories were 102.7% of 2022 at 12.006 million head. Among the four largest cattle feeding states, Texas (2.91 million head) and Kansas (2.50 million head) were up the most, with Texas up 4% and Kansas inventories up 7% year over year. Nebraska (2.58 million head) and Colorado (1.03 million head) were both down 1% in feedlot totals compared to a year earlier.
The top four states represent 75.1% of Dec. 1 feedlot inventories. Feedlot inventories in No. 5 Iowa were up 2% year over year at 640,000 head, and California, the sixth largest cattle feeding state, had a December feedlot total of 510,000 head, up 1% over one year earlier. Oklahoma, Idaho, Washington and Arizona round out the top 10 cattle feeding states.
November feedlot placements were 98.1% of 2022, smaller than 2022 after two months of year-over-year higher placements in September and October. The placement total was a little larger than average expectations at the top end of pre-report estimates. Although feedlot inventories were 2.7% larger than a year earlier, total feedlot placements the last six months (which account for 96.2% of the December feedlot inventory), were down 0.3% from the same June-November period in 2022.
This means that the larger feedlot inventory now is due to a slower feedlot turnover rate and not because of increased total feedlot production. This is reflected in the November feedlot marketings that were down 7.4% year over year. A slower feedlot marketing rate raises concerns that feedlots may not be staying current in marketings. Steer carcass weights pushed to new record levels with weekly weights at 940 pounds in late November and early December.
Heifer carcass weights peaked at 854 lbs. recently, just one pound shy of the largest weekly heifer carcass weight in January 2022. However, indications are that the heavier carcass weights reflect deliberate marketing intentions (feeding cattle longer) rather than a systemic lack of currentness in feedlots.
Feeder and fed cattle prices increased the week before Christmas. The five-market cash fed price on Dec. 22 was $170.50/cwt, up roughly $2/cwt from the previous week. On a weekly basis, fed cattle prices averaged 22% above year-earlier levels in 2023. Feeder cattle prices were sharply higher in Oklahoma auctions for the final week of sales in 2023.
The price of 475-lb., medium/large, #1 steers was $317.52/cwt, up 44% from one year earlier, and averaged 37% higher year over year across all weeks in 2023. The price of 775-lb. steers was $225.87/cwt, up 28% year over year. These big feeder cattle have averaged 31% higher year over year on a weekly basis in 2023. — Derrell S. Peel, Oklahoma State University Extension livestock marketing specialist
