Feedlot placement weight is related to fed cattle finished weight. For cattle in the typical range of placement weights, a one-pound increase in placement weight results in 0.5 pounds of additional finished weight.
Feeder markets are reflecting a mix of influences including seasonal supplies of calves, wheat pasture forage conditions, higher corn prices and volatility in futures markets.
Beef demand has remained remarkably strong since the beginning of the pandemic. Beef demand continues to be challenged with restricted food service, but retail grocery demand remains robust.
A large winter storm is advancing across the central U.S. bringing cold temperatures and some much-needed moisture. Feedlots continued to build inventory during September leading to a record inventory for Oct. 1.
Barring a major setback, it appears that America’s beef markets are moving past the worst of the COVID-19 disruptions that have caused upheaval in recent weeks.
Consumers first saw beef supply disruptions in March when the shutdown of food service shifted demand to the retail grocery side where supply chain bottlenecks and a surge in demand resulted in temporary shortages.
The anger and frustration of some cattlemen has turned to accusations and proposals for change that will have long-term implications and unintended consequences for the cattle and beef industry.
The current cattle market situation creates significant disparities between the current supply and demand situation and expectations for coming supply and demand conditions.
The U.S. and global economy is in uncharted waters. There are many unknowns about the timing, severity and aftermath of the disease. For beef, there are longer-term questions about the overall impact on demand.
