January often provides challenging cattle marketing prospects and this year offered multiple winter storms disrupting feeder and fed cattle markets, as well as boxed beef markets.
U.S. hay production in 2023 was 6.3% higher than the drought year of 2022, but remains 7.8% lower than the 10-year average. Hay stocks were higher in eight of the ten states, with decreases only in Kansas and Kentucky.
Cattle markets are encouraging more aggressive production. Individually, cattle producers may be able to respond immediately or may be forced to remain on the defensive due to physical or financial reasons.
Under current market conditions beef exports are expected to decrease and beef imports should increase...exactly the outcome observed thus far in 2023, says economist Derrell Peel.
A combination of factors has contributed to increasing feedlot placements the past two months, including drought and increasing imports. But biggest factor is likely that producers are taking advantage of strong prices.
Reported national feeder cattle volumes (auction, direct and video/internet) are up 5.6% year-over-year since Labor Day, with the majority in September which contributed to the large September feedlot placements.
