USDA’s May Cattle on Feed report said there were 1.3% more cattle on feed than a year ago. April placements were up a surprising 7.5% and April marketings were up 1.2%.
It seems certain that herd expansion has slowed to a snail’s pace compared to one year ago, but from a historical standard, expansion is likely still moving at a fairly rapid clip.
As producers continue to make both short-term and longer-term decisions in managing their operations it is useful to periodically step back and take stock of characteristics depicting the industry more broadly. The recently updated estimates from USDA ERS of production costs and returns offer an opportunity to increase our understanding of regional variation in the U.S. cow-calf sector.
For years, the accepted target weight for yearling replacement beef heifers at breeding was 65% of their mature weight. Recently that target has been questioned.
Monthly fed cattle net returns have been negative since December 2014. A few months ago, it appeared that we would climb above breakeven this spring. However, that was before the recent drop in fed cattle prices.
